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HomeMy WebLinkAbout2015-02-17 Agenda Packet I declare under p2nalty of perjury tha[ I am employed by the City of Chula Vista in the Office of the City Clerk and that I posted this document on the bulletin board according_to w.-:;-�` "� Brown Act requirements. _`°'. ` ' �'�`` Z 13 1� Signed � ��\il/ �:- --� -"'-� _ �.r''.ti-� ! -��.�-� � � ' cm oF -� z : ti . CHULA VISTA _ . ,�.,:..Z ,:. � - . i;.�>- o a ...��- ' � �'����^�1�[/ � Mary Casillas Salas, Mayor Patricia Aguilar, Councilmember Gary Halbert, City Manager Pamela Bensoussan, Councilmember Glen R. Googins, City Attomey John McCann, Councilmember ponna R. Norris, City Clerk Steve Miesen, Councilmember Tuesday, February 17, 2015 4:00 PM Council Chambers 276 4th Avenue, Building A Chula Vista, CA 91910 REGULAR MEETING OF THE CITY COUNCIL CALL TO ORDER ROLL CALL: Councilmembers Aguilar, Bensoussan, McCann, Miesen and Mayor Salas PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY A. 15-0013 PRESENTATION OF A PROCLAMATION TO CHULA VISTA POLICE OFFICERS EVELIA KAHL AND TYLER WALL BY HEALTH & HUMAN SERVICES AGENCY DIRECTOR, SOUTH REGION, BARBARA JIMENEZ, OF THE LIVE WELL SAN DIEGO CHAMPION AWARv Arvv RECOGNITION OF THEIR EFFORTS TOWARD THE SAFETY OF HARBORSIDE PARK Clty olChula Ysta Paga 7 Pnnted on 1H1/1015 . City Council Agenda February 17,2015 B. 15-0043 PRESENTATION OF A PROCLAMATION TO SOUTHWESTERN COLLEGE SCHOOL OF ARTS AND COMMUNICATION DEAN, DONNA ARNOLD, PROCLAIMING SATURDAY, FEBRUARY 28, 2015 AS SOUTHWESTERN COLLEGE SCHOOL OF ARTS AND COMMUNICATION DAY IN THE CITY OF CHULA VISTA CONSENT CALENDAR (Items 1 - 8) The Council will enact the Consent Calendar staff recommendations by one motion, without discussion, unless a Councilmember, a member of the public, or staff requests that an item be removed for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed beginning at 6:00 p.m.. 1. 15-0041 APPROVAL OF MINUTES of January 13, January, 27, February 3, and February 5, 2015. Staff Recommendation: Council approve the minutes. 2. 15-0025 WRITTEN COMMUNICATIONS A. Letter of resignation from Nora Vargas, Resource Conservation Commission. B. Letter of resignation from Jason Paguio, Cultural Arts Commission. Staff Recommendation: Council accept the resignations. 3. 15-0015 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A MINI-GRANT AGREEMENT, ACCEPTING $2,800 FROM THE SAN DIEGO ASSOCIATION OF GOVERNMENTS, AND APPROPRIATING SAID GRANT FUNDS TO THE PUBLIC WORKS FISCAL YEAR 2015 BUDGET TO SUPPORT NATIONAL BIKE MONTH ACTIVITIES (4/5 VOTE REQUIRED) Department: Public Works Department Staff Recommendation: Council adopt the resolution. City of Chula Vista Page 2 Printed on 211212015 2015-02-17 Agenda Packet Page 2 City Council Agenda February 17,2015 4. 14-0749 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2014-15 CIP BUDGET AND ESTABLISHING A NEW CAPITAL IMPROVEMENT PROJECT "BONITA CANYON ENVIRONMENTAL RESTORATION AND MITIGATION PROJECT (DR200)"; REDUCING THE DR189 CIP BUDGET (GENERAL FUND) BY $377,900 AND APPROPRIATING THE EQUIVALENT AMOUNT TO DR200; ACCEPTING BIDS, AWARDING A CONTRACT IN THE AMOUNT OF $244,602.10 TO NATURES IMAGE, INC. FOR BONITA CANYON ENVIRONMENTAL RESTORATION AND MITIGATION PROJECT (DR200); WAIVING CITY COUNCIL POLICY NO. 574-01, AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AN AMOUNT NOT TO EXCEED $37,397.90 (4/5 VOTE REQUIRED) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A SOLE SOURCE AGREEMENT WITH HELIX ENVIRONMENTAL PLANNING, INC. FOR THE PROVISION OF BIOLOGICAL MONITORING SERVICES DURING THE CONSTRUCTION AND SUBSEQUENT FIVE-YEAR MAINTENANCE PERIOD FOR BONITA CANYON ENVIRONMENTAL RESTORATION AND MITIGATION PROJECT Department: Public Works Department Staff Recommendation: Council adopt the resolutions. 5. 15-0004 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $144,954 FROM THE U.S. DEPARTMENT OF HOMELAND SECURITY AND APPROPRIATING SAID FUNDS TO THE POLICE GRANT FUND FOR OPERATION STONEGARDEN (4/5 VOTE REQUIRED) Department: Police Department Staff Recommendation: Council adopt the resolution. City of Chula Vista Page 3 Printed on 211212015 2015-02-17 Agenda Packet Page 3 City Council Agenda February 17,2015 6. 14-0632 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING AN INTERFUND LOAN POLICY B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AFFIRMING AND CONSOLIDATING EXISTING INTERFUND LOANS FROM THE TRUNK SEWER CAPITAL RESERVE FUND TO THE SALT CREEK TRUNK SEWER DEVELOPMENT IMPACT FEE FUND WITH A PRINCIPAL AMOUNT OF $20,667,477 AND APPROVING A CONSOLIDATED INTERFUND LOAN REPAYMENT SCHEDULE REFLECTING FINANCING COSTS AND REPAYMENTS TO DATE C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AFFIRMING AND CONSOLIDATING EXISTING INTERFUND LOANS FROM THE TRUNK SEWER CAPITAL RESERVE FUND TO THE STORM DRAIN REVENUE FUND WITH A PRINCIPAL AMOUNT OF $576,023 AND APPROVING A CONSOLIDATED INTERFUND LOAN REPAYMENT SCHEDULE REFLECTING FINANCING COSTS AND REPAYMENTS TO DATE D. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AFFIRMING AND CONSOLIDATING EXISTING INTERFUND LOANS FROM THE SEWER FACILITIES REPLACEMENT FUND TO THE STORM DRAIN REVENUE FUND WITH A PRINCIPAL AMOUNT OF $640,000 AND APPROVING A CONSOLIDATED INTERFUND LOAN REPAYMENT SCHEDULE REFLECTING FINANCING COSTS AND REPAYMENTS TO DATE E. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AFFIRMING THE EXISTING INTERFUND LOAN FROM THE GENERAL FUND TO THE CIVIC CENTER COMPONENT OF THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE FUND WITH A PRINCIPAL AMOUNT OF $1,528,969 AND APPROVING AN INTERFUND LOAN REPAYMENT SCHEDULE REFLECTING FINANCING COSTS AND REPAYMENTS TO DATE City of Chula Vista Page 4 Printed on 211212015 2015-02-17 Agenda Packet Page 4 City Council Agenda February 17,2015 F. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AFFIRMING AND CONSOLIDATING THE EXISTING INTERFUND LOANS FROM THE TRANSPORTATION DEVELOPMENT IMPACT FEE FUND TO THE FIRE SUPPRESSION SYSTEM EXPANSION COMPONENT OF THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE FUND WITH A PRINCIPAL AMOUNT OF $10.5 MILLION AND APPROVING A CONSOLIDATED INTERFUND LOAN REPAYMENT SCHEDULE REFLECTING FINANCING COSTS AND REPAYMENTS TO DATE G. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AFFIRMING AND CONSOLIDATING THE EXISTING INTERFUND LOANS FROM THE EASTERN PARKLAND ACQUISITION AND DEVELOPMENT FEE FUND TO THE WESTERN PARKLAND ACQUISITION AND DEVELOPMENT FEE FUND WITH A PRINCIPAL AMOUNT OF $9.94 MILLION AND APPROVING A CONSOLIDATED INTERFUND LOAN REPAYMENT SCHEDULE REFLECTING FINANCING COSTS AND REPAYMENTS TO DATE H. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING VARIOUS AMENDMENTS TO THE FISCAL YEAR 2014-15 BUDGET TO REFLECT INTERFUND LOAN REPAYMENTS AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) Department: Finance Department Staff Recommendation: Council adopt the resolutions. 7. 15-0001 ACCEPTANCE OF AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30, 2014 Department: Finance Department Staff Recommendation: Council accept the report. City of Chula Vista Page 5 Printed on 211212015 2015-02-17 Agenda Packet Page 5 City Council Agenda February 17,2015 8. 15-0030 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SPONSORSHIP OF HARBORFEST 2015 AND STARLIGHT PARADE 2015; AUTHORIZING THE FILING OF AN APPLICATION FOR A $25,000 COMMUNITY ENHANCEMENT GRANT FROM THE COUNTY OF SAN DIEGO, APPROVING THE REQUISITE RESOLUTION PROVIDED BY THE COUNTY; AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO SIGN AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE COUNTY OF SAN DIEGO AND RELATED DOCUMENTS Department: City Manager Staff Recommendation: Council adopt the resolution. THE FOLLOWING ITEMS TO BE HEARD BEGINNING AT 6:00 P.M.: ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC COMMENTS Persons speaking during Public Comments may address the Council on any subject matter within the Council's jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council from discussing or taking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff. Comments are limited to three minutes. PUBLIC HEARINGS The following item(s) have been advertised as public hearing(s) as required by law. If you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. City of Chula Vista Page 6 Printed on 211212015 2015-02-17 Agenda Packet Page 6 City Council Agenda February 17,2015 9. 14-0625 CONSIDERATION OF AMENDMENTS TO CHULA VISTA MUNICIPAL CODE CHAPTER 19 . 09 (GROWTH MANAGEMENT), AND APPROVAL OF THE GROWTH MANAGEMENT PROGRAM IMPLEMENTATION MANUAL AND THE GROWTH MANAGEMENT PROGRAM DOCUMENT (Continued from January 27, 2015) A. ORDINANCE OF THE CITY OF CHULA VISTA APPROVING AMENDMENTS TO CHULA VISTA MUNICIPAL CODE CHAPTER 19.09 (GROWTH MANAGEMENT) (FIRST READING) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE GROWTH MANAGEMENT PROGRAM IMPLEMENTATION MANUAL TO REPLACE THE THRESHOLD STANDARDS AND GROWTH MANAGEMENT OVERSIGHT COMMITTEE POLICY, AND THE GROWTH MANAGEMENT PROGRAM DOCUMENT Department: Development Services Department Staff Recommendation: Council conduct the public hearing, place the ordinance on first reading and adopt the resolution. 10. 15-0003 CONSIDERATION OF WAIVING A MINOR MATHEMATICAL ERROR IN THE BID RECEIVED FOR THE "REPLACEMENT OF CURB AND GUTTER CITYWIDE FISCAL YEAR 2014/2015" RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING A MINOR MATHEMATICAL ERROR; ACCEPTING BIDS; AWARDING A CONTRACT FOR THE "REPLACEMENT OF CURB AND GUTTER CITYWIDE FY2014-2015, IN THE CITY OF CHULA VISTA, CALIFORNIA CIP#STL402" PROJECT TO JUST CONSTRUCTION, INC. IN THE AMOUNT OF $165,686.50; AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AMOUNT NOT TO EXCEED $15,313.50 Department: Public Works Department Staff Recommendation: Council conduct the public hearing and adopt the resolution. City of Chula Vista Page 7 Printed on 211212015 2015-02-17 Agenda Packet Page 7 City Council Agenda February 17,2015 ACTION ITEMS The Item(s) listed in this section of the agenda will be considered individually by the Council and are expected to elicit discussion and deliberation. If you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 11. 15-0002 REPORT ON FISCAL YEAR 2014 STRATEGIC PLAN ACCOMPLISHMENTS Department: City Manager Staff Recommendation: Council accept the report. 12. 14-0636 CONSIDERATION OF APPROVING A DESIGN/BUILD AGREEMENT WITH WEST COAST GENERAL/CONDON JOHNSON, INC. CONSTRUCTION, AMENDING THE FISCAL YEAR 2014/2015 BUDGET, ESTABLISHING THE TELEGRAPH CANYON ROAD EROSION REPAIR PROJECT, AND APPROPRIATING $1,800,000 FROM THE GENERAL FUND RESERVES THEREFOR RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE DESIGN/BUILD AGREEMENT WITH WEST COAST GENERAL/CONDON JOHNSON, INC. CONSTRUCTION FOR THE DESIGN AND CONSTRUCTION OF A SECANT PILE WALL IN TELEGRAPH CANYON; AMENDING THE FISCAL YEAR 2014/2015 CIP BUDGET AND ESTABLISHING A NEW CAPITAL IMPROVEMENT PROJECT "TELEGRAPH CANYON ROAD EROSION REPAIR (DR199)"; AND APPROPRIATING $1,800,000 FROM THE GENERAL FUND RESERVES TO CIP DR199 (4/5 VOTE REQUIRED) Department: Public Works Department Staff Recommendation: Council adopt the resolution. CITY MANAGER'S REPORTS MAYOR'S REPORTS 13. 15-0023 COUNCIL DISCUSSION AND POSSIBLE ACTION REGARDING CHANGING THE TIME OF REGULAR CITY COUNCIL MEETINGS City of Chula Vista Page 8 Printed on 211212015 2015-02-17 Agenda Packet Page 8 City Council Agenda February 17,2015 COUNCILMEMBERS' COMMENTS 14. 15-0024 COUNCILMEMBER AGUILAR: CONSIDERATION OF THE FORMATION OF AN AD-HOC SUBCOMMITTEE WITH COUNCILMEMBERS AGUILAR AND McCANN FOR THE 2015 STARLIGHT PARADE CLOSED SESSION Should the Council conclude Special Orders of the Day and the Consent Calendar prior to 6:00 p.m., it may convene in Closed Session prior to 6:00 p.m. to hear items listed on the agenda under Closed Session. Announcements of actions taken in Closed Session shall be made available by noon on Wednesday following the Council Meeting at the City Attorney's office in accordance with the Ralph M. Brown Act(Government Code 54957.7). 15. 15-0028 CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9 (b) One Case. [The case to be discussed involves a letter dated January 21, 2015, from Coast Law Group LLP and Briggs Law Corporation Re: Notice of Intent to File Law Suit and Demand for Cure Public Records Act and Brown Act Violations] 16. 15-0042 CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: 224 Third Avenue, Chula Vista, CA [APN: 568-044-19] Agency Negotiators: Eric Crockett and Rick Ryals Negotiating Parties: City of Chula Vista and Hector Gonzales Under Negotiation: Price and Terms ADJOURNMENT to the Regular City Council Meeting on March 3, 2015, at 4:00 p.m., in the Council Chambers. City of Chula Vista Page 9 Printed on 211212015 2015-02-17 Agenda Packet Page 9 City Council Agenda February 17,2015 Materials provided to the City Council related to any open-session item on this agenda are available for public review at the City Clerk's Office, located in City Hall at 276 Fourth Avenue, Building A, during normal business hours. In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service, contact the City Clerk's Office at(619) 691-504 1(California Relay Service is available for the hearing impaired by dialing 711) at least forty-eight hours in advance of the meeting. Sign up at www.chulavistaca.gov to receive email notifications when City Council agendas are published online. City of Chula Vista Page 10 Printed on 211212015 2015-02-17 Agenda Packet Page 10 City of Chula Vista OF CHU�LAVISTA Staff Report File#: 15-0013, Item#: A. PRESENTATION OF A PROCLAMATION TO CHULA VISTA POLICE OFFICERS EVELIA KAHL AND TYLER WALL BY HEALTH & HUMAN SERVICES AGENCY DIRECTOR, SOUTH REGION, BARBARA JIMENEZ, OF THE LIVE WELL SAN DIEGO CHAMPION AWARD AND RECOGNITION OF THEIR EFFORTS TOWARD THE SAFETY OF HARBORSIDE PARK City of Chula Vista Page 1 of 1 Printed on 2/12/2015 2015-02-17 Agenda Packet Page 11 City of Chula Vista CTY CHUILAVISTA Staff Report File#: 15-0043, Item#: B. PRESENTATION OF A PROCLAMATION TO SOUTHWESTERN COLLEGE SCHOOL OF ARTS AND COMMUNICATION DEAN, DONNA ARNOLD, PROCLAIMING SATURDAY, FEBRUARY 28, 2015 AS SOUTHWESTERN COLLEGE SCHOOL OF ARTS AND COMMUNICATION DAY IN THE CITY OF CHULA VISTA City of Chula Vista Page 1 of 1 Printed on 2/12/2015 powered by Leg 2015-02-17 Agenda Packet Page 12 City of Chula Vista OF CHU�LAVISTA Staff Report File#: 15-0041, Item#: 1. APPROVAL OF MINUTES of January 13, January, 27, February 3, and February 5, 2015. RECOMMENDED ACTION Council approve the minutes. City of Chula Vista Page 1 of 1 Printed on 2/12/2015 2015-02-17 Agenda Packet Page 13 City of Chula Vista Meeting Minutes - Draft Tuesday,January 13,2015 2:00 PM Council Chambers 276 4th Avenue, Building A Chula Vista, CA 91910 REGULAR MEETING OF THE CITY COUNCIL CALL TO ORDER A Regular Meeting of the City Council of the City of Chula Vista was called to order at 2:13 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: Present: Councilmember Aguilar, Deputy Mayor Bensoussan, Councilmember McCann and Mayor Salas Also Present. City Manager Halbert, City Attorney Googins, City Clerk Norris, and Assistant City Clerk Bigelow PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE Deputy Mayor Bensoussan led the Pledge of Allegiance. CONSENT CALENDAR (Part 1 - Item 1) 1. 14-0745 ORDINANCE NO. 3335 OF THE CITY OF CHULA VISTA AMENDING SECTION 2.04.020 OF THE CHULA VISTA MUNICIPAL CODE RELATING TO TIME AND PLACE OF COUNCIL MEETINGS, CHANGING THE TIME OF REGULAR MEETINGS FROM 2:00 P.M. TO 4:00 P.M. (SECOND READING AND ADOPTION) ACTION: A motion was made by Councilmember McCann, seconded by Councilmember Aguilar, that Ordinance No. 3335 be adopted, heading read, text waived. The motion carried by the following vote: Yes: 4- Aguilar, Bensoussan, McCann and Salas No: 0 Abstain: 0 ACTION ITEMS (Part 1 - Item 1.5) 1.5 14-0752 A. DELIBERATION AND APPOINTMENT TO CITY COUNCIL SEAT NO. 4 B. OATH OF OFFICE FOR NEWLY APPOINTED COUNCILMEMBER Steve Arends, Chula Vista resident, spoke in support of Shirley Horton. Scott McMillin, Coronado resident, representing the Corky McMillin Companies, spoke in support of Bill Hall. City of Chula Vista Page 1 2015-02-17 Agenda Packet Page 14 City Council Meeting Minutes -Draft January 13, 2015 Lisa Johnson, Bonita resident, spoke in support of Bill Hall. Audie de Castro, San Diego resident, representing the Philippine Honorary Consul of San Diego, spoke in support of Jason Paguio. Betsy Keller, Chula Vista resident, spoke in support of James Clark and in opposition to the City holding a special election. Dean McGill, San Diego resident, spoke in support of Bill Hall. Ruben Rosental, Chula Vista resident, spoke in support of Bill Hall. Fanny Rosental, Chula Vista resident, spoke in support of Bill Hall and in opposition to the City holding a special election. Tina Williams, Chula Vista resident, spoke in support of Bill Hall and in opposition to the City holding a special election. Richard D'Ascoli, Chula Vista resident, spoke in support of Bill Hall. Yolanda Ramos, Chula Vista resident, spoke in support of Shirley Horton. Ron Bolles, Chula Vista resident, representing Bolles Arts International, spoke in support of Jason Paguio. David Gonzalez, Chula Vista resident, submitted written documentation in support of Bill Hall and Steve Miesen, and in opposition to the City holding a special election. He was not present to speak. Mayor Salas moved to appoint Steve Miesen. The motion died due to lack of second. Deputy Mayor Bensoussan moved to appoint Jason Paguio. The motion died due to lack of second. ACTION: A motion was made by Councilmember Aguilar, seconded by Mayor Salas, that Lisa Moctezuma be appointed. The motion failed by the following vote: Yes: 2- Aguilar and Salas No: 2- Bensoussan and McCann Abstain: 0 ACTION: A motion was made by Councilmember McCann, seconded by Deputy Mayor Bensoussan, that Shirley Horton be appointed. The motion failed by the following vote: Yes: 2- Bensoussan and McCann No: 2- Aguilar and Salas Abstain: 0 Mayor Salas moved to appoint Bill Hall. The motion died due to lack of second. City Manager Halbert spoke regarding the cost of a special election and potential impact on the City's budget. Mayor Salas moved to appoint Steve Miesen. The motion died due to lack of second. Mayor Salas recessed the meeting at 2:58 p.m. The Council reconvened at 3:15 p.m., with all members present. City of Chula Vista Page 2 2015-02-17 Agenda Packet Page 15 City Council Meeting Minutes -Draft January 13, 2015 Mayor Sa/as trailed Item 1.5 and stated discussion on the item would continue following Item 11. Mayor Sa/as recessed the meeting at 3:19 p.m. The Council reconvened at 4:02 p.m., with all members present. CONSENT CALENDAR (Part 2 - Items 2-10) 2. 14-0750 APPROVAL OF MINUTES of January 6, 2015. Recommended Action: Council approve the minutes. 3. 14-0744 WRITTEN COMMUNICATIONS A. Letter of Resignation from Emmanuel Soto, Cultural Arts Commission. B. Letter of Resignation from Jeffrey Scott, Parks & Recreation Commission. Recommended Action: Council accept the resignations. 4. 14-0716 RESOLUTION NO. 2015-004 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $80,000 FROM THE U.S. DEPARTMENT OF HOMELAND SECURITY AND APPROPRIATING SAID FUNDS TO THE FEDERAL GRANTS FUND FOR THE URBAN AREA SECURITY INITIATIVE (4/5 VOTE REQUIRED) Recommended Action: Council adopt the resolution. 5. 14-0717 RESOLUTION NO. 2015-005 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $95,000 TO THE SUPPLIES AND SERVICES CATEGORY OF THE ASSET SEIZURE FUND (4/5 VOTE REQUIRED) Recommended Action: Council adopt the resolution. 6. 14-0721 RESOLUTION NO. 2015-006 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS; REJECTING THE BID OF THE FIRST APPARENT LOW BIDDER AS NON-RESPONSIVE; AWARDING THE CONTRACT FOR THE "BROADWAY STREET IMPROVEMENT PROJECT BETWEEN MAIN STREET AND SOUTH CITY LIMITS IN THE CITY OF CHULA VISTA, CALIFORNIA (CIP# STM381)" TO TC CONSTRUCTION IN THE AMOUNT OF $1,161,197; APPROPRIATING $150,000 FROM THE AVAILABLE BALANCE OF THE TRAFFIC SIGNAL FUND TO STM381; AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AN AMOUNT NOT TO EXCEED $70,000 (4/5 VOTE REQUIRED) Recommended Action: Council adopt the resolution. City of Chula Vista Page 3 2015-02-17 Agenda Packet Page 16 City Council Meeting Minutes -Draft January 13, 2015 7. 14-0726 RESOLUTION NO. 2015-007 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS, AWARDING THE CONTRACT FOR THE "STORM DRAIN REHABILITATION FY 2013/2014 AT VARIOUS LOCATIONS IN THE CITY OF CHULA VISTA (DR193/DR196)" PROJECT TO TC CONSTRUCTION CO., IN THE AMOUNT OF $795,373, WAIVING CITY COUNCIL POLICY 574-01, AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AN AMOUNT NOT TO EXCEED $80,000 Recommended Action: Council adopt the resolution. 8. 14-0688 RESOLUTION NO. 2015-008 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SECOND AMENDMENT TO THE LOCAL GOVERNMENT PARTNERSHIP AGREEMENT WITH SAN DIEGO GAS & ELECTRIC TO PROVIDE AN ADDITIONAL $1,563,585 FOR ENERGY EFFICIENCY PROGRAMS AND TO EXTEND THE TERM OF THE AGREEMENT; AUTHORIZING THE MAYOR TO EXECUTE THE AMENDMENT AND THE CITY MANAGER TO EXECUTE ALL OTHER DOCUMENTS NECESSARY TO IMPLEMENT THE AMENDMENT; AND APPROPRIATING $1,563,585 TO THE ENERGY CONSERVATION FUND (4/5 VOTE REQUIRED) Recommended Action: Council adopt the resolution. 9. 14-0731 RESOLUTION NO. 2015-009 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE METROPOLITAN TRANSIT SYSTEM (MTS) REGARDING THE CITY'S DIVESTMENT OF PUBLIC TRANSPORTATION SERVICES AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT Recommended Action: Council adopt the resolution and approve the agreement. 10. 14-0727 RESOLUTION NO. 2015-010 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A $185,000 AGREEMENT BETWEEN THE CITY AND THE CENTER FOR SUSTAINABLE ENERGY (CSE) FOR SUPPORT IN IMPLEMENTING THE CITY OF CHULA VISTA'S SUSTAINABLE COMMUNITIES PROGRAM Recommended Action: Council adopt the resolution. Approval of the Consent Calendar ACTION: A motion was made by Mayor Salas, seconded by Councilmember McCann, to approve staff's recommendations on the above Consent Calendar items, headings read,text waived. The motion carried by the following vote: Yes: 4- Aguilar, Bensoussan, McCann and Salas No: 0 Abstain: 0 City of Chula Vista Page 4 2015-02-17 Agenda Packet Page 17 City Council Meeting Minutes -Draft January 13, 2015 ITEMS REMOVED FROM THE CONSENT CALENDAR There were none. PUBLIC COMMENTS There were none. Closed Session Item 12 was taken out of order and discussed after the Consent Calendar. Mayor Sa/as announced that the Council would convene in closed session to discuss the items listed below. At 4:09 p.m., the Council convened in closed session. CLOSED SESSION Pursuant to Resolution No. 13706 and Council Policy No. 346-03, Official Minutes and records of action taken during Closed Sessions are maintained by the City Attorney. 12. 14-0751 CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9 (b) One Case ACTION: No reportable action. The Council reconvened in open session at 6:05 p.m., with all members present. PUBLIC HEARINGS 11. 14-0625 CONSIDERATION OF AMENDMENTS TO CHULA VISTA MUNICIPAL CODE CHAPTER 19.09 (GROWTH MANAGEMENT), AND APPROVAL OF THE GROWTH MANAGEMENT PROGRAM IMPLEMENTATION MANUAL AND THE GROWTH MANAGEMENT PROGRAM DOCUMENT (Continued from January 27, 2015) A. ORDINANCE OF THE CITY OF CHULA VISTA APPROVING AMENDMENTS TO CHULA VISTA MUNICIPAL CODE CHAPTER 19.09 (GROWTH MANAGEMENT) (FIRST READING) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE GROWTH MANAGEMENT PROGRAM IMPLEMENTATION MANUAL TO REPLACE THE THRESHOLD STANDARDS AND GROWTH MANAGEMENT OVERSIGHT COMMITTEE POLICY, AND THE GROWTH MANAGEMENT PROGRAM DOCUMENT Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and no earlier than the time specified in the notice. The public hearing was previously opened at the City Council meeting of November 18, 2014. Planning Manager Batchelder and Associate Planner Vander Bie presented information on the item. City of Chula Vista Page 5 2015-02-17 Agenda Packet Page 18 City Council Meeting Minutes -Draft January 13, 2015 Armida Torres, Chula Vista resident and member of the Growth Management Oversight Commission, spoke in support of staffs recommendation. There being no other members of the public who wished to speak, Mayor Salas stated that the item would be continued to the meeting of January 27, 2015. 1.5 14-0752 A. DELIBERATION AND APPOINTMENT TO CITY COUNCIL SEAT NO. 4 B. OATH OF OFFICE FOR NEWLY APPOINTED COUNCILMEMBER Discussion on Item 1.5 continued. Jill Galvez, Chula Vista resident, spoke in support of Lisa Moctezuma. Michael Gorski, Chula Vista resident, spoke in support of Shirley Horton. Linda Wagner, Chula Vista resident, requested to be considered for the appointment, spoke in opposition to the City holding a special election, and spoke in support of Lisa Moctezuma. Michelle Krug, Chula Vista resident, spoke in opposition to the City holding a special election and spoke in support of Lisa Moctezuma. Lisa Cohen, representing the Chula Vista Chamber of Commerce, spoke in opposition to the City holding a special election and spoke in support of Bill Hall and Steve Miesen. Zilema Maldonado, Chula Vista resident, spoke in opposition to the City holding a special election and spoke in support of Bill Hall and Steve Miesen. Virginia Jensen, Coronado resident, spoke in opposition to the City holding a special election and spoke in support of Shirley Horton and Steve Miesen. David Gonzalez, Chula Vista resident, spoke in support of Steve Miesen and Bill Hall. City Attorney Googins spoke regarding potential conflict of interest issues for councilmembers and the analysis the City Attorney's office had performed on the information submitted by the Council candidate finalists. ACTION: A motion was made by Mayor Salas, seconded by Councilmember Aguilar, that Steve Miesen be appointed. The motion failed by the following vote: Yes: 2- Aguilar and Salas No: 2- Bensoussan and McCann Abstain: 0 City Manager Halbert spoke regarding the budget impact of a potential special election and stated that City staff would recommend budget cuts to the Council, should it be unable to appoint a member to fill the vacant seat. ACTION: A motion was made by Deputy Mayor Bensoussan, seconded by Mayor Salas, that Jason Paguio be appointed. The motion failed by the following vote: Yes: 2- Bensoussan and Salas No: 2- Aguilar and McCann Abstain: 0 City of Chula Vista Page 6 2015-02-17 Agenda Packet Page 19 City Council Meeting Minutes -Draft January 13, 2015 ACTION: A motion was made by Councilmember Aguilar, seconded by Mayor Salas, that James Clark be appointed. The motion failed by the following vote: Yes: 2- Aguilar and Salas No: 2- Bensoussan and McCann Abstain: 0 ACTION: A motion was made by Councilmember McCann, seconded by Deputy Mayor Bensoussan, that Shirley Horton be appointed. The motion failed by the following vote: Yes: 2- Bensoussan and McCann No: 2- Aguilar and Salas Abstain: 0 ACTION: A motion was made by Mayor Salas, seconded by Councilmember Aguilar, that Mark Livag be appointed. The motion failed by the following vote: Yes: 2- Aguilar and Salas No: 2- Bensoussan and McCann Abstain: 0 ACTION: A motion was made by Deputy Mayor Bensoussan, seconded by Mayor Salas, that Steve Miesen be appointed. The motion carried by the following vote: Yes: 4- Aguilar, Bensoussan, McCann and Salas No: 0 Abstain: 0 City Clerk Norris administered the oath of office to Councilmember Miesen. CITY MANAGER'S REPORTS City Manager Halbert congratulated newly appointed Councilmember Miesen. MAYOR'S REPORTS Mayor Salas recognized the members of the Council for coming to consensus on appointing Councilmember Miesen. COUNCILMEMBERS' COMMENTS Councilmember Miesen expressed appreciation for his appointment to the City Council. Councilmember Aguilar spoke regarding the freedoms afforded to American citizens and recent attacks in France related to freedom of self-expression. Councilmember McCann congratulated Councilmember Miesen on his appointment. CLOSED SESSION Item 12 was taken out of order and discussed following the Consent Calendar. City of Chula Vista Page 7 2015-02-17 Agenda Packet Page 20 City Council Meeting Minutes -Draft January 13, 2015 ADJOURNMENT At 7:50 p.m., Mayor Salas adjourned the meeting to the City Council Meeting on January 27, 2015, at 4:00 p.m., in the Council Chambers. Kerry K. Bigelow, Assistant City Clerk City of Chula Vista Page 8 2015-02-17 Agenda Packet Page 21 City of Chula Vista Meeting Minutes - Draft Tuesday,January 27,2015 4:00 PM Council Chambers 276 4th Avenue, Building A Chula Vista, CA 91910 SPECIAL MEETING OF THE CITY COUNCIL CALL TO ORDER A Special Meeting of the City Council of the City of Chula Vista was called to order at 4:08 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: Present: Deputy Mayor Bensoussan, Councilmember McCann, Councilmember Miesen and Mayor Salas Absent: Councilmember Aguilar Also Present: City Manager Halbert, City Attorney Googins, City Clerk Norris, and Assistant City Clerk Bigelow PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE Councilmember McCann led the Pledge of Allegiance. Mayor Salas stated that Item 8 would be continued to a date uncertain. CONSENT CALENDAR (Items 1 - 6) 1. 15-0011 APPROVAL OF MINUTES of January 8, 2015. Recommended Action: Council approve the minutes. 2. 15-0005 WRITTEN COMMUNICATIONS Letter of resignation from Patricia Chavez, Districting Commission Recommended Action: Council accept the resignation. 3. 14-0725 RESOLUTION NO. 2015-011 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE FIRE CHIEF OR HIS DESIGNEE TO SUBMIT A GRANT APPLICATION ON BEHALF OF THE CITY OF CHULA VISTA TO THE CALIFORNIA OFFICE OF TRAFFIC SAFETY AND EXECUTE ALL RELATED DOCUMENTATION ASSOCIATED WITH THIS GRANT APPLICATION Recommended Action: Council adopt the resolution. City of Chula Vista Page 1 2015-02-17 Agenda Packet Page 22 City Council Meeting Minutes -Draft January 27, 2015 4. 14-0732 RESOLUTION NO. 2015-012 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE AUTHORIZED POSITION COUNT IN THE FIRE DEPARTMENT TO REFLECT THE ADDITION OF 2.0 FIREFIGHTER/PARAMEDIC POSITIONS AND THE ELIMINATION OF 2.0 FIREFIGHTER POSITIONS Recommended Action: Council adopt the resolution. 5. 14-0740 RESOLUTION NO. 2015-013 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AWARDING A PURCHASE ORDER TO SAN DIEGO POLICE EQUIPMENT COMPANY IN THE AMOUNT OF $90,180 FOR PARACLETE BALLISTIC HELMETS IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE CITY OF CHULA VISTA BID B01-14/15 Recommended Action: Council adopt the resolution. 6. 14-0680 RESOLUTION NO. 2015-014 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE PARK MASTER PLAN FOR THE 7.55-ACRE P-3 PUBLIC NEIGHBORHOOD PARK, LOCATED IN OTAY RANCH VILLAGE 2, AND THE NAME, "MONTECITO PARK" Recommended Action: Council adopt the resolution. Approval of the Consent Calendar ACTION: A motion was made by Councilmember McCann, seconded by Deputy Mayor Bensoussan, to approve staff's recommendations on the above Consent Calendar items, headings read, text waived. The motion carried by the following vote: Yes: 4- Bensoussan, McCann, Miesen and Salas No: 0 Abstain: 0 PUBLIC COMMENTS (Part 1 of 2) Ed Kravitz, Imperial Beach resident, representing San Diego & Midwestern Railway Partners LLC, spoke regarding the Coronado Beltline and rapid transit in the South San Diego Bay area. Closed Session Items 11 and 12 were taken out of order and heard after Public Comments. City Attorney Googins stated that, regarding Item 12, only one case, related to a letter dated January 21, 2015 from Coast Law Group LLP and Briggs Law Corporation RE: Notice of Intent to File Law Suit and Demand for Cure Public Records Act and Brown Act Violations, would be discussed at that time. Erik Judson, representing JMI Sports, spoke regarding Item 11 and the Chula Vista Olympic Training Center. Mayor Salas announced that the Council would convene in closed session to discuss the items listed below. At 4:23 p.m., the Council convened in Closed Session. City of Chula Vista Page 2 2015-02-17 Agenda Packet Page 23 City Council Meeting Minutes -Draft January 27, 2015 CLOSED SESSION Pursuant to Resolution No. 13706 and Council Policy No. 346-03, Official Minutes and records of action taken during Closed Sessions are maintained by the City Attorney. 11. 15-0007 CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: 2800 Olympic Parkway, Chula Vista, CA 91915 [Chula Vista Olympic Training Center property] Agency Negotiators: Gary Halbert, Kelley Bacon, Glen Googins Negotiating Parties: City of Chula Vista and the United States Olympic Committee (USOC) Under Negotiation: Price and Terms ACTION: No reportable action. 12. 15-0010 CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9 (b) Two Cases. [One case to be discussed involves a letter dated January 21, 2015 from Coast Law Group LLP and Briggs Law Corporation RE: Notice of Intent to File Law Suit and Demand for Cure Public Records Act and Brown Act Violations] ACTION: No reportable action. The Council reconvened in open session at 6:03 p.m., with Councilmembers Bensoussan, McCann, Miesen, and Mayor Sa/as present. ITEMS REMOVED FROM THE CONSENT CALENDAR There were none. PUBLIC COMMENTS (Part 2 of 2) There were no other public comments. PUBLIC HEARINGS 7. 14-0625 CONSIDERATION OF AMENDMENTS TO CHULA VISTA MUNICIPAL CODE CHAPTER 19.09 (GROWTH MANAGEMENT), AND APPROVAL OF THE GROWTH MANAGEMENT PROGRAM IMPLEMENTATION MANUAL AND THE GROWTH MANAGEMENT PROGRAM DOCUMENT (Continued from January 13, 2015) City of Chula Vista Page 3 2015-02-17 Agenda Packet Page 24 City Council Meeting Minutes -Draft January 27, 2015 A. ORDINANCE OF THE CITY OF CHULA VISTA APPROVING AMENDMENTS TO CHULA VISTA MUNICIPAL CODE CHAPTER 19.09 (GROWTH MANAGEMENT) (FIRST READING) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE GROWTH MANAGEMENT PROGRAM IMPLEMENTATION MANUAL TO REPLACE THE THRESHOLD STANDARDS AND GROWTH MANAGEMENT OVERSIGHT COMMITTEE POLICY, AND THE GROWTH MANAGEMENT PROGRAM DOCUMENT Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and no earlier than the time specified in the notice. The public hearing was previously opened at the City Council meeting of November 18, 2014. Mayor Sa/as stated the item would be continued to the meeting of February 17, 2015. 8. 15-0009 CONSIDERATION OF APPROVING AMENDMENTS TO THE CHULA VISTA GAMING PLAN (Includes public hearing for Item A and related Items B and C) A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AMENDMENTS TO THE CHULA VISTA GAMING PLAN TO INCREASE THE MAXIMUM NUMBER OF GAMING TABLES FROM 18 TO 20 B. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE SECTION 5.20.160 (MAXIMUM NUMBER OF CARD ROOM TABLES) TO INCREASE THE NUMBER OF CARD ROOM TABLES TO 20 C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA RATIFYING CHIEF DAVID BEJARANO'S APPROVAL OF NEW OWNERS POSSESSING FINANCIAL INTEREST IN THE GAMING OPERATIONS AND CARDROOM LICENSE OF THE VILLAGE CLUB CARD ROOM Mayor Sa/as stated the item had been pulled by staff and would be continued to a date uncertain. BOARD AND COMMISSION REPORTS 9. 14-0747 REPORT FROM THE DISTRICTING COMMISSION A. RESOLUTION NO. 2015-015 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE APPOINTMENT OF A NEW COMMISSIONER TO FILL A VACANCY ON THE DISTRICTING COMMISSION City of Chula Vista Page 4 2015-02-17 Agenda Packet Page 25 City Council Meeting Minutes -Draft January 27, 2015 B. RESOLUTION NO. 2015-016 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE PROPOSED DISTRICTING COMMISSION BUDGET, AND APPROPRIATING FUNDS, ACCORDINGLY (4/5 VOTE REQUIRED) Assistant City Attorney Maland presented information on the item. Districting Commission Chair Torres spoke regarding Item 9B and read a letter from the Districting Commission. ACTION: A motion was made by Deputy Mayor Bensoussan, seconded by Mayor Salas, that Resolution No. 2015-015 be adopted, heading read, text waived. The motion carried by the following vote: Yes: 4- Bensoussan, McCann, Miesen and Salas No: 0 Abstain: 0 ACTION: A motion was made by Councilmember McCann, seconded by Deputy Mayor Bensoussan, that Resolution No. 2015-016 be adopted, heading read, text waived. The motion carried by the following vote: Yes: 4- Bensoussan, McCann, Miesen and Salas No: 0 Abstain: 0 CITY MANAGER'S REPORTS City Manager Halbert reported on the status of the project to rebuild the power substation on the bayfront and the undergrounding of high-power lines. MAYOR'S REPORTS 10. 14-0746 APPOINTMENT OF CITY COUNCILMEMBERS TO OUTSIDE AGENCIES: (Continued from December 16, 2014) Chula Vista Veterans Home Support Foundation - Member (Mayor Salas was appointed 12/16/14) Chula Vista Veterans Home Support Foundation - Alternate International Council for Local Environmental Initiatives (ICLEI) - Environmental Lead International Council for Local Environmental Initiatives (ICLEI) -Alternate League of California Cities, San Diego Division - Member (Mayor Salas was appointed 12/16/14) League of California Cities, San Diego Division -Alternate Metropolitan Transit System Board of Directors (MTS) - Member Metropolitan Transit System Board of Directors (MTS) - Alternate Metropolitan Wastewater Commission (Metro) - Member City of Chula Vista Page 5 2015-02-17 Agenda Packet Page 26 City Council Meeting Minutes -Draft January 27, 2015 (Mayor Salas was appointed 12/16/14) Metropolitan Wastewater Commission (Metro) - Alternate Otay Valley Regional Park (OVRP) Policy Committee and Preserve Owner Manager (POM) - Member Otay Valley Regional Park (OVRP) Policy Committee and Preserve Owner Manager (POM) - Alternate San Diego Association of Governments (SANDAL) Board of Directors - Member (Mayor Salas was appointed 12/16/14) San Diego Association of Governments (SANDAL) Board of Directors - Alternates (2) San Diego Association of Governments (SANDAL) Bayshore Bikeway Committee South County Economic Development Council (EDC) - Member South County Economic Development Council (EDC) - Alternate Mayor Salas distributed proposed regional board appointments to the Council. Discussion ensued on the appointments. ACTION: A motion was made by Councilmember McCann, seconded by Councilmember Miesen,to approve the following appointments to outside agencies: Councilmember Aguilar: San Diego Association of Governments (SANDAG) Bayshore Bikeway Committee, and Otay Valley Regional Park Policy Committee and Preserve Owner Manager(Alternate). Deputy Mayor Bensoussan: International Council for Local Environmental Initiatives (Member), San Diego Association of Governments (SANDAG) Board of Directors (1st Alternate), SANDAG Borders Committee (pending SANDAG approval), SANDAG Regional Planning Committee (pending SANDAG approval), SANDAG Executive Committee (pending SANDAG approval), and South County Economic Development Council (Member). Councilmember McCann: Chula Vista Veterans Home Support Foundation (Member), San Diego Association of Governments (SANDAG) Board of Directors (2nd Alternate), SANDAG Public Safety Committee (pending SANDAG approval), League of California Cities (Alternate), and South County Economic Development Council (Alternate). Councilmember Miesen: Metro Wastewater Commission (Member), International Council for Local Environmental Initiatives (Alternate), Otay Valley Regional Park Policy Committee and Preserve Owner Manager (Member), and Metropolitan Transit System Board of Directors (Alternate). Mayor Salas: Metropolitan Transit System Board of Directors (Member), San Diego Association of Governments (SANDAG) Board of Directors (Member - Appointed 12/16/14), SANDAG Transportation Committee (pending SANDAG approval), League of California Cities (Member - Appointed 12/16/14), and Metropolitan Wastewater Commission (Alternate). City of Chula Vista Page 6 2015-02-17 Agenda Packet Page 27 City Council Meeting Minutes -Draft January 27, 2015 The motion carried by the following vote: Yes: 4- Bensoussan, McCann, Miesen and Salas No: 0 Abstain: 0 Mayor Salas announced the receipt of a certification of appreciation from Marine Corps League for the Toys for Tots program. She also reported on a recent meeting with the Mayor of Tijuana on the relationship between Tijuana and Chula Vista. Mayor Salas paid tribute to Martin Luther King, Jr. COUNCILMEMBERS' COMMENTS Councilmember McCann spoke regarding the relationship between Chula Vista and Tijuana. CLOSED SESSION Items 11 and 12 were taken out of order following Public Comments. ADJOURNMENT At 6:34 p.m., Mayor Salas adjourned the meeting to the City Council Meeting on February 3, 2015, at 4:00 p.m., in the Council Chambers. Kerry K. Bigelow, Assistant City Clerk City of Chula Vista Page 7 2015-02-17 Agenda Packet Page 28 City of Chula Vista Meeting Minutes - Draft Tuesday, February 3,2015 4:00 PM Council Chambers 276 4th Avenue, Building A Chula Vista, CA 91910 SPECIAL MEETING OF THE CITY COUNCIL CALL TO ORDER A Special Meeting of the City Council of the City of Chula Vista was called to order at 4:01 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: Present: Councilmember Aguilar, Deputy Mayor Bensoussan, Councilmember McCann, Councilmember Miesen and Mayor Salas Also Present: City Manager Halbert, City Attorney Googins, City Clerk Norris, and Assistant City Clerk Bigelow PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE Councilmember Aguilar led the Pledge of Allegiance. SPECIAL ORDERS OF THE DAY A. 15-0021 PRESENTATION ON THE LAUNCH OF THE NEW CITY WEBSITE Marketing & Communications Manager Steinberger and Webmaster Frank gave a presentation on the City's new website. Councilmembers gave feedback on the new website. CONSENT CALENDAR (Items 1 - 6) Housing Manager Hines answered Council questions regarding Item 2. 1. 14-0757 RESOLUTION NO. 2015-017 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE SUBMITTAL OF AN APPLICATION FOR A HOUSING-RELATED PARKS (HRP) GRANT FROM THE STATE OF CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT, AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A STANDARD AGREEMENT IF SELECTED FOR SUCH FUNDING, ANY AMENDMENTS THERETO, AND ANY RELATED DOCUMENTS NECESSARY FOR IMPLEMENTATION OF THE HRP Recommended Action: Council adopt the resolution. City of Chula Vista Page 1 2015-02-17 Agenda Packet Page 29 City Council Meeting Minutes -Draft February 3, 2015 2. 14-0753 A. ACCEPTANCE OF THE 2013/2014 CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER) OF THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME), AND EMERGENCY SOLUTIONS GRANT (ESG) AND REPROGRAMMING OF AVAILABLE FUNDS B. RESOLUTION NO. 2015-018 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FISCAL YEAR 2014/2015 AMENDMENT TO THE HUD ANNUAL ACTION PLAN TO REPROGRAM $450,000 OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS TO THREE ELIGIBLE PROJECTS; AND APPROPRIATING COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS IN THE AMOUNT OF $450,000 TO THREE ELIGIBLE PROJECTS; AND AUTHORIZING THE CITY OF CHULA VISTA DEVELOPMENT SERVICES DEPARTMENT TO ENTER INTO A MEMORANDUM OF UNDERSTANDING WITH THE FIRE DEPARTMENT FOR THE IMPLEMENTATION OF TWO CDBG FUNDED ACTIVITIES (4/5 VOTE REQUIRED) Recommended Action: Council accept the report and adopt the resolution. 3. 14-0755 RESOLUTION NO. 2015-019 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A TWO-PARTY AGREEMENT BETWEEN THE CITY AND NINYO & MOORE GEOTECHNICAL AND ENVIRONMENTAL SCIENCES CONSULTANTS TO PERFORM A PHASE II ENVIRONMENTAL SITE INVESTIGATION AND WAIVING THE FORMAL CONSULTANT SELECTION PROCESS Recommended Action: Council adopt the resolution. City of Chula Vista Page 2 2015-02-17 Agenda Packet Page 30 City Council Meeting Minutes -Draft February 3, 2015 4. 14-0741 A. RESOLUTION NO. 2015-020 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE FIRE DEPARTMENT TO EXCEED THE $100,000 PURCHASING THRESHOLD; AND AUTHORIZING THE USE OF COOPERATIVE PURCHASING PROCEDURES TO EXECUTE A NATIONAL PURCHASING PARTNERS MEMBER INTERGOVERNMENTAL COOPERATIVE PURCHASING AGREEMENT (IGA) TO "PIGGYBACK" ON A MASTER PURCHASE AGREEMENT TO PURCHASE TURNOUTS AND FIRE-RELATED EQUIPMENT FROM MUNICIPAL EMERGENCY AGENCY INC. (MES) AND L.N. CURTIS & SONS; AND AUTHORIZING THE CITY MANAGER AND/OR HIS DESIGNEE TO SIGN ALL RELATED AGREEMENTS B. RESOLUTION NO. 2015-021 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE COMPETITIVE BIDDING PROCESS, AUTHORIZING THE FIRE DEPARTMENT TO EXCEED THE $100,000 PURCHASING THRESHOLD, AND AWARDING A THREE-YEAR CONTRACT WITH AN ADDITIONAL THREE, OPTIONAL ONE-YEAR EXTENSIONS FOR THE PURCHASE OF FIRE- AND EMERGENCY-RELATED EQUIPMENT AND SUPPLIES TO AFECO, INC., DOING BUSINESS AS FIRE ETC. AND AUTHORIZING THE CITY MANAGER AND/OR HIS DESIGNEE TO SIGN THE AGREEMENT Recommended Action: Council adopt the resolutions. 5. 14-0390 RESOLUTION NO. 2015-022 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ADOPTION OF THE 2012 STANDARD SPECIFICATIONS FOR PUBLIC WORKS CONSTRUCTION "GREENBOOK," 2012 SAN DIEGO REGIONAL SUPPLEMENT AND THE 2015 CITY OF CHULA VISTA STANDARD SPECIAL PROVISIONS Recommended Action: Council adopt the resolution. 6. 14-0759 RESOLUTION NO. 2015-023 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AWARDING THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND WILLDAN FINANCIAL SERVICES FOR SPECIAL DISTRICT APPORTIONMENT, DELINQUENCY MONITORING ADMINISTRATION AND OTHER SERVICES FOR ASSESSMENT DISTRICTS (ADs), COMMUNITY FACILITIES (MELLO-ROOS) DISTRICTS (CFDs) AND OPEN SPACE DISTRICTS (OSDs), AND AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE SAID AGREEMENT Recommended Action: Council adopt the resolution. City of Chula Vista Page 3 2015-02-17 Agenda Packet Page 31 City Council Meeting Minutes -Draft February 3, 2015 Approval of the Consent Calendar ACTION: A motion was made by Councilmember Aguilar, seconded by Councilmember McCann, to approve staff's recommendations on the above Consent Calendar items, headings read,text waived. The motion carried by the following vote: Yes: 5- Aguilar, Bensoussan, McCann, Miesen and Salas No: 0 Abstain: 0 Closed Session Item 7 was taken out of order and discussed after the Consent Calendar. Mayor Salas announced that the Council would convene in closed session to discuss the item listed below. At 4:36 p.m., the Council convened in Closed Session. CLOSED SESSION Pursuant to Resolution No. 13706 and Council Policy No. 346-03, Official Minutes and records of action taken during Closed Sessions are maintained by the City Attorney. 7. 15-0020 CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (a) Names of cases: A. John Hess v. Dave Hanneman, et al., United States District Court, Case No. 14cv2271 CAB JMA B. Rudolph Diaz v. City of Chula Vista; Dave Hanneman, San Diego Superior Court, Case No. 37-2014-16795-CU-OE-CTL C. Rudy Diaz v. City of Chula Vista, San Diego Superior Court, Case No. 37-2013-35036-CU-WM-CTL ACTION: No reportable action. The Council reconvened in open session at 6:00 p.m., with all members present. ITEMS REMOVED FROM THE CONSENT CALENDAR There were none. PUBLIC COMMENTS David Danciu, Chula Vista resident, presented Mayor Salas with a gavel. CITY MANAGER'S REPORTS There were none. City of Chula Vista Page 4 2015-02-17 Agenda Packet Page 32 City Council Meeting Minutes -Draft February 3, 2015 MAYOR'S REPORTS At the request of Mayor Salas, there was consensus of the Council to add an item to the agenda of February 17, 2015 to discuss changing the time of regular Council meetings. At the request of Mayor Salas, there was consensus of the Council to request the City Manager schedule a workshop within 90 days on the topic of economic development in the City. Mayor Salas announced several upcoming activities at Southwestern College. COUNCILMEMBERS' COMMENTS Deputy Mayor Bensoussan announced that the dog park in Eucalyptus Park was expected to open in the end of February 2015 and that HarborFest would be held on August 27, 2015. Councilmember Miesen spoke in support of the workshop suggested by Mayor Salas regarding economic development. At the request of Councilmember Aguilar, there was consensus of the Council to add an item to the agenda of February 17, 2015 to discuss the appointment of herself and Councilmember McCann to an ad-hoc subcommittee for the 2015 Starlight Parade. Councilmember McCann expressed interest in working on the 2015 Starlight Parade subcommittee and spoke in support of the workshop suggested by Mayor Salas. He also announced American Heart Month and related awareness activities. CLOSED SESSION Item 7 was taken out of order and heard following the Consent Calendar. ADJOURNMENT At 6:19 p.m., Mayor Salas adjourned the meeting to the Regular City Council Workshop on February 5, 2015, at 4:00 p.m., in the Council Chambers; and thence to the Regular City Council Meeting on February 17, 2015, at 4:00 p.m., in the Council Chambers. Kerry K. Bigelow, Assistant City Clerk City of Chula Vista Page 5 2015-02-17 Agenda Packet Page 33 City of Chula Vista Meeting Minutes - Draft Thursday, February 5,2015 4:00 PM Council Chambers 276 4th Avenue, Building A Chula Vista, CA 91910 CITY COUNCIL WORKSHOP REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CALL TO ORDER A Regular Meeting of the City Council of the City of Chula Vista was called to order at 4:05 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: Present: Councilmember Aguilar, Deputy Mayor Bensoussan, Councilmember McCann, Councilmember Miesen and Mayor Salas Also Present. City Manager Halbert, Deputy City Attorney Shirey, City Clerk Norris, and Assistant City Clerk Bigelow. PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE PUBLIC COMMENTS WORKSHOP 1. 15-0018 CHULA VISTA TRANSPORTATION PROGRAM UPDATE A. SANDAG's 2050 REGIONAL TRANSPORTATION PLAN UPDATE FOR 2015 B. SOUTH BAY BUS RAPID TRANSIT C. I-805/EAST PALOMAR STREET DIRECT ACCESS RAMP D. LIGHT RAIL TROLLEY & FREIGHT RAIL E. LOCAL ARTERIAL ROADWAYS F. BICYCLE PROGRAM G. PEDESTRIAN PROGRAM H. FISCAL YEAR 2015/2016 CAPITAL IMPROVEMENT PROGRAM Ronald Hidinger, Chula Vista resident, spoke in support of safe bicycle routes in Chula Vista and expressed concern regarding bike lane safety on a portion of Paseo Ranchero. Assistant Director of Engineering Valle and Principal Civil Engineer Rivera gave a presentation on the transportation program. Principal Civil Engineer Rivera provided information on the 2050 Regional Transportation Plan. Jennifer Williamson, Senior Transportation Planner, representing SANDAG, provided an overview and timeline of the South Bay Bus Rapid Transit project. City of Chula Vista Page 1 2015-02-17 Agenda Packet Page 34 City Council Meeting Minutes -Draft February 5, 2015 Ramon Martinez, Project Manager, representing Caltrans, spoke regarding the 1-805 express lanes project. John Dorow, Senior Engineer, representing SANDAG, presented information on the Palomar Street Rail Grade Separation Study. Principal Civil Engineer Rivera presented information on the Blue Line trolley improvements, traffic monitoring program, and facility upgrades. In response to questions from Mayor Salas, City Manager Halbert and Principal Civil Engineer Adler spoke regarding the future widening of Heritage Road. Principal Civil Engineer Rivera provided information on the bicycle and pedestrian programs. Marcus Bush, National City resident, spoke in support of Chula Vista collaborating with National City and other agencies on regional transportation issues. He also spoke regarding proposed regional transportation projects. Randy Van Vleck, representing Bike Walk Chula Vista, spoke regarding bikeways in Chula Vista and other regional transportation projects. Deputy Mayor Bensoussan spoke regarding the letter received from the Environmental Health Coalition regarding the proposed Blue Line Express trolley, Purple Line trolley and Interstate 5 expansion projects. Principal Civil Engineer Rivera presented information on the proposed Fiscal Year 2015-2016 capital improvement program. ADJOURNMENT At 5:51 p.m., Mayor Salas adjourned the meeting to the Regular City Council Meeting on February 17, 2015, at 4:00 p.m., in the Council Chambers. Kerry K. Bigelow, Assistant City Clerk City of Chula Vista Page 2 2015-02-17 Agenda Packet Page 35 City of Chula Vista OF CHU�LAVISTA Staff Report File#: 15-0025, Item#: 2. WRITTEN COMMUNICATIONS A. Letter of resignation from Nora Vargas, Resource Conservation Commission. B. Letter of resignation from Jason Paguio, Cultural Arts Commission. RECOMMENDED ACTION Council accept the resignations. City of Chula Vista Page 1 of 1 Printed on 2/12/2015 2015-02-17 Agenda Packet Page 36 -----Original Message----- From: Nora Vargas [mailto: Sent: Monday, February 02, 2015 3:59 PM To: Pamela Bensoussan Cc: Ellen;Jennifer Bustamante; F2MS; Brendan Reed; Kerry Bigelow Subject: RCCp Councilwoman Bensoussan, I am writing to thank you for recommending me to serve on the Resource Conservation Commission for the City of Chula Vista. It has been my honor to serve since 2011 and to have been re-appointed by Mayor Cox last year. I am so grateful for the opportunity, as the City is absolutely lucky to have on of the best teams in the State working on these issues. Their work is truly groundbreaking,they are leaders in the State and more importantly they always take the needs of Chula Vista residents into account before making any changes or recommendations. I have also enjoyed the opportunity to serve with a fantastic group of dedicated Chula Vista residents that are the creme of the crop and have so much knowledge and expertise to share. Hence why it was very difficult for me to make the decision to step down from the Commission effective immediately. I am so grateful for the opportunity and as a resident and as a member of the Board of Trustees of Southwestern College, I look forward to opportunities to better serve our communities and engage our residents on matters related to the environment and conservation in particular. Again, I cannot thank you enough for the opportunity to serve on the RCC. I look forward to continuing our work together. Best, Nora 2015-02-17 Agenda Packet Page 37 Kerry Bigelow From: Jason Paguio Sent: Tuesday, February 10, 2015 10:15 AM To: Stephanie Loney, Yeelin Cheung; Kerry Bigelow Cc: Christine Moore; Melissa Baldwin; Crystal Alonso; Allen Gore; Kirin Macapugay;Jennifer Rodriguez; Subject: From Jason Paguio Commissioners and Staff, Upon tatting a position for the Office of Councilrnember Steve Miesen, it is with regret that I must tender my resianation from the Cultural Arts Commission, effective immediately- I-am grateful for having had the opportunity to serve with all of you and will continue to fitrther the cause for cultural arts. Sincerelv. Jason Pasuio t 2015-02-17 Agenda Packet Page 38 City of Chula Vista CTY CHUILAVISTA Staff Report File#: 15-0015, Item#: 3. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A MINI- GRANT AGREEMENT, ACCEPTING $2,800 FROM THE SAN DIEGO ASSOCIATION OF GOVERNMENTS, AND APPROPRIATING SAID GRANT FUNDS TO THE PUBLIC WORKS FISCAL YEAR 2015 BUDGET TO SUPPORT NATIONAL BIKE MONTH ACTIVITIES (4/5 VOTE REQUIRED) RECOMMENDED ACTION Council adopt the resolution. SUMMARY The City celebrates National Bike Month in May as a means to build community awareness about bicycling as a safe, healthy, and environmentally-friendly commute option. This year, the San Diego Association of Governments' iCommute program released a request for mini-grant proposals for projects to support National Bike Month. As a result, the City was awarded a $2,800 grant to update the popular Bike Chula Vista map and host a bike valet at the Chula Vista Go Green & Clean Family Day on April 25th at the Otay Ranch Town Center. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the proposed action(s) qualifies for a Class 8 categorical exemption pursuant to Section 15308 [Actions by Regulatory Agencies for Protection of the Environment] of the State CEQA Guidelines because the bicycling- related initiatives will contribute to reducing Chula Vista's greenhouse gas or "carbon" emissions and improving local air quality. Therefore, no further CEQA environmental review is required. BOARD/COMMISSION RECOMMENDATION Not Applicable. DISCUSSION Every May, the City and region celebrate National Bike Month as a means to build community awareness about bicycling as a safe, healthy, and environmentally-friendly commute option. In addition to reducing traffic congestion and improving air quality, bicycling and its related infrastructure improves the "livability" of a community. Over the last few years, Chula Vista has expanded bike lanes, installed bike sharrow markings along certain bike routes, and hosted bike-related educational workshops. These efforts helped Chula Vista recently become designated as an official "Bicycle- Friendly Community" (Bronze Level) by the League of American Bicyclists. In December, the San Diego Association of Governments' (SANDAL) iCommute program released a request for mini-grant proposals for programs or projects that educate and encourage bicycling as a viable transportation choice as part of National Bike Month. As a result, City staff submitted a $2,800 City of Chula Vista Page 1 of 2 Printed on 2/12/2015 powered by Leg 2015-02-17 Agenda Packet Page 39 File#: 15-0015, Item#: 3. proposal to SANDAG to support two public outreach efforts. First, the City requested funds to update and reprint the popular, pocket-sized Bike Chula Vista map, which features bicycle lanes and routes, safety tips, and local bike store information. Funding was also requested to host a bike valet at the Chula Vista Go Green & Clean Family Day, an annual event that attracts over 15,000 attendees, on April 25t" at the Otay Ranch Town Center. On January 23rd, the City was notified by SANDAG that its proposal was selected for funding. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The proposed National Bike Month activities directly contribute to the City's Healthy Community goals. CURRENT YEAR FISCAL IMPACT The proposed budget amendment has no net fiscal impact to the General Fund: these one-time expenditures will be offset by one-time grant revenues. The $2,800 in grant funding will be appropriated to the Public Works Conservation Section budget to carry out the proposed grant activities. ONGOING FISCAL IMPACT The proposed budget amendment is a one-time activity, so there is no ongoing fiscal impact associated with the budget amendment. ATTACHMENTS Attachment 1 - SANDAG iCommute Bike Month Mini-Grant Agreement Staff Contact: Brendan Reed City of Chula Vista Page 2 of 2 Printed on 2/12/2015 2015-02-17 Agenda Packet Page 40 (Affmadr AGREEMENT FOR WOMMUTE BIKE MONTH MINI GRANT PROGRAM THIS Agreement for iCommute Bike Month Mini Grant Program 5004254 ("Agreement") is made this 17th day of February , 2015 , by and between the San Diego Association of Governments ("SANDAG") and the Grant Recipient ("Grantee") CITY OF CHULA VISTA Title of Activity ("Project"): Go Green, Go Clean, Go Bike Objectives: Bike education & outreach Location: Otay Ranch Town Center Date(s): April 25, 2015 Address: 2015 Birch Rd. City, State, ZIP: Chula Vista, CA 91915 Telephone: (619)409-3887 Fax: Email: kayala@chulavistaca.gov Contact Person: Krystal Ayala Tax I.D. No.: The purpose of this Agreement is to establish the terms and conditions for SANDAG to provide Grantee with funding to implement the Project. I. TERMS AND CONDITIONS: A. Term The term of this Agreement shall commence immediately upon the effective date written on the top of this Agreement. This Agreement shall remain in effect until the Project is completed or July 31, 2015, whichever comes first. The term of this Agreement may be amended by mutual agreement of the parties. B. Approved Project Budget Grantee successfully applied for iCommute Bike Month Mini Grant Program funding for the Project. SANDAG agrees to provide support for, the named activity by a grant in the amount of $ 2,800 C. Project Implementation and Oversight Although SANDAG will be providing financial assistance to Grantee to support the Project, SANDAG will not be responsible for project implementation or have any control of Grantee or the means or methods it uses to carry out the Project. Grantee hereby declares that it is independent from SANDAG and agrees that, in the performance of this Agreement, it shall act as an independent contractor and not as an employee of SANDAG. Grantee has and hereby retains full control of all the employment, compensation, and discharge of all employees of Grantee assisting in its performance hereunder. Grantee shall be fully responsible for all matters relating to payment of its employees, including compliance with Social Security, withholding tax, and all other laws and regulations governing such matters. Grantee shall be responsible for its own acts and those of its agents and employees during 2015-02-17 Agenda Packet Page 41 the term of this Agreement, except as otherwise specifically provided, as an independent contractor. D. Insurance Grantee shall procure and maintain for the duration of this Grant, insurance against claims for injuries to persons, or damages to property, which may arise from or in connection with the performance of the work hereunder by Grantee, its agents, representatives, or employees. Insurance coverage shall meet or exceed the following minimums: Commercial General Liability (per occurrence) $100,000 Commercial General Liability (aggregate) $100,000 Workers' Compensation Employer's Liability In the amount required by law E. No SANDAG Obligations to Third Parties In connection with the Project, the Grantee agrees that SANDAG shall not be subject to any obligations or liabilities to any subgrantee, lessee, third-party contractor, or other person or entity that is not a party to the Agreement for the Project Grantee agrees to defend, indemnify, protect, and hold SANDAG and its directors, officers, and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the Grantee's or its subcontractors' employees, agents, or officers, which arise from or are connected with or are caused or claimed to be caused by the negligent, reckless, or willful acts or omissions of Grantee and its subcontractors and their agents, officers, or employees, in performing the work or services herein, and all expenses of investigating and defending against same, including attorney's fees and costs; provided, however, that the Grantee's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of SANDAG, its directors, agents, officers, or employees. Grantee shall have no authority, express or implied, to act on behalf of SANDAG in any capacity whatsoever, as an agent or otherwise. Grantee shall have no authority, express or implied, to bind SANDAG or its members, agents, or employees to any obligation whatsoever. F. Project Schedule and Payments The Grantee agrees to complete the Project according to the Project Schedule below. The schedule may be amended if agreed by both parties, and without a formal amendment. Within 30 calendar days following project completion, the Grantee agrees to submit a final certification of project expenses and final report. By submitting any accrued but unpaid subcontractor costs for reimbursement, Grantee agrees that, within ten days of receipt of reimbursement by SANDAG, the full amount submitted as a reimbursable accrued subcontractor cost shall be paid to the subcontractor. Payments shall be subject to review by SANDAG for compliance with the requirements of this Agreement, and payment may be withheld if Grantee is not in compliance with the Agreement. 2 2015-02-17 Agenda Packet Page 42 G. Termination Termination for cause shall be merited in the event of a material breach of this Agreement. Events of material breach shall include, but not be limited to, failure to adhere to the project time schedule, failure to maintain required insurance, bankruptcy, failure to pay any subcontractor or other company or person retained by Grantee in connection with this Agreement, or Grantee negligently or intentionally disregards laws, ordinances, rules, regulations, or orders of any public authority having jurisdiction. H. Project Schedule Project Milestone Completion Deadlines 1. Project Implementation April 1, 2015 to June 30, 2015 2. Project Completion June 30, 2015 3. Final Report Due July 31, 2015 I. Compliance with All Applicable Laws and Code of Conduct Grantee agrees to abide by all requirements of applicable and relevant laws or regulations, and will ensure that the Project complies with the eligibility requirements and ineligibility prohibitions for the Project as set forth in the Request for Grant Applications. J. Deliverables and Records Grantee agrees that all deliverables it provides to SANDAG, including photos, shall be owned by SANDAG and shall be free from third party ownership claims. Grantee shall maintain complete and accurate records with respect to allowable costs incurred under this Agreement. All such records shall be maintained on a generally-accepted accounting basis and shall be clearly identified. Grantee shall provide reasonable access to the representatives of SANDAG, or its designees, including representatives of the applicable government agencies if this Agreement is funded in whole or in part with state or federal funds, to such books and records and any other books, documents, papers, or records of Grantee that are related to this Agreement. K. Notice Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by email or mailed via first class mail to the below listed addresses: San Diego Association of Governments 401 B Street, Suite 800 San Diego, CA 92101 Attention: Antoinette Meier Phone: (619) 699-7381 Email: antoinette.meier @sandag.org 3 2015-02-17 Agenda Packet Page 43 Grantee: City of Chula Vista 276 Fourth Ave Chula Vista, CA 91910 Attention: Krystal Ayala Phone: 619-409-3887 Email: kayala@chulavistaca.gov and shall be effective upon receipt thereof. This Agreement sets forth all of the terms and conditions for the Agreement between SANDAG and Grantee. This Agreement may be executed and delivered by facsimile signature and a facsimile signature shall be treated as an original. SAN DIEGO ASSOCIATION OF GOVERNMENTS CITY OF CHULA VISTA Signature Date Signature Date Ray Traynor, TDM Program Manager Mary Casillas Salas, Mayor 4 2015-02-17 Agenda Packet Page 44 City Signature Page for iCommute Bike Month Mini-Grant Program Agreement between City of Chula Vista and SANDAG IN WITNESS WHEREOF, City and SANDAG have executed this Agreement, indicating that they have read and understood same, and indicate their full and complete consent to its terms: City of Chula Vista By: Mary Casillas Salas, Mayor Attest: Donna Norris, City Clerk Approved as to form: Glen R. Googins, City Attorney 2015-02-17 Agenda Packet Page 45 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A MINI-GRANT AGREEMENT AND ACCEPTING $2,800 FROM THE SAN DIEGO ASSOCIATION OF GOVERNMENTS AND APPROPRIATING SAID GRANT FUNDS TO THE PUBLIC WORKS FISCAL YEAR 2015 BUDGET TO SUPPORT NATIONAL BIKE MONTH ACTIVITIES WHEREAS, the City of Chula Vista celebrates National Bike Month every May as a means to build community awareness about bicycling as a safe, healthy, and environmentally- friendly commute option; and WHEREAS, the City has expanded bike lanes, installed bike sharrow markings along certain bike routes, and hosted bike-related educational workshops helping Chula Vista be designated as an official "Bicycle-Friendly Community" (Bronze Level) by the League of American Bicyclists; and WHEREAS, the San Diego Association of Governments' (SANDAG) iCommute program released a request for mini-grant proposals in December for projects that educate and encourage bicycling as part of National Bike Month; and WHEREAS, the City submitted and was awarded a $2,800 grant to update the popular, pocket-sized Bike Chula Vista map and to host a bike valet at the Chula Vista Go Green& Clean Family Day on April 25th. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it: (1) Approves the iCommute Bike Month Mini-Grant Agreement with the San Diego Association of Governments in the form presented,with such minor modifications as may be required or approved by the City Attorney, a copy of which is on file in the office of the City Clerk; and (2) Authorizes and directs the Mayor to execute the Agreement; and (3) Accepts the grant funds and authorizes a revenue offset appropriation of$2,800 to the Supplies & Services expense category of the Public Works (Conservation Section)budget. Presented by Approved as to form by Richard A. Hopkins Glen R. Googins Director of Public Works City Attorney 2015-02-17 Agenda Packet Page 46 City of Chula Vista CTY CHUILAVISTA Staff Report File#: 14-0749, Item#: 4. A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2014-15 CIP BUDGET AND ESTABLISHING A NEW CAPITAL IMPROVEMENT PROJECT "BONITA CANYON ENVIRONMENTAL RESTORATION AND MITIGATION PROJECT (DR200)"; REDUCING THE DR189 CIP BUDGET (GENERAL FUND) BY $377,900 AND APPROPRIATING THE EQUIVALENT AMOUNT TO DR200; ACCEPTING BIDS, AWARDING A CONTRACT IN THE AMOUNT OF $244,602.10 TO NATURES IMAGE, INC. FOR BONITA CANYON ENVIRONMENTAL RESTORATION AND MITIGATION PROJECT (DR200); WAIVING CITY COUNCIL POLICY NO. 574-01 , AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AN AMOUNT NOT TO EXCEED $37,397.90 (4/5 VOTE REQUIRED) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A SOLE SOURCE AGREEMENT WITH HELIX ENVIRONMENTAL PLANNING, INC. FOR THE PROVISION OF BIOLOGICAL MONITORING SERVICES DURING THE CONSTRUCTION AND SUBSEQUENT FIVE-YEAR MAINTENANCE PERIOD FOR BONITA CANYON ENVIRONMENTAL RESTORATION AND MITIGATION PROJECT RECOMMENDED ACTION Council adopt the resolutions. SUMMARY On March 27, 2013, in accordance with Resolution 2013-095, the Bonita Canyon Emergency Repair Project was completed in order to avert the potential threat of injury and property damage. On July 22, 2014, the US Army Corps of Engineers (ACOE) issued an approval for the Habitat Mitigation and Monitoring Plan (HMMP) for Bonita Canyon Emergency Regional General Permit No. 63 permit (RGP63). Said HMMP requires the City to install, maintain, and monitor the upland and wetland environmental mitigation for five years. Tonight's action will authorize the Director of Public Works to award a contract to Natures Image, Inc. (Natures Image) for an amount of $244,602.10 for implementing the environmental restoration, and mitigation project as well as awarding the ongoing biological monitoring to Helix Environmental Planning for an amount of$95,900. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 33 Categorical Exemption pursuant to Section 15333 (Small Habitat Restoration Project) of the State CEQA Guidelines. Thus, no further environmental review is necessary. BOARD/COMMISSION RECOMMENDATION City of Chula Vista Page 1 of 4 Printed on 2/12/2015 powered by Leg 2015-02-17 Agenda Packet Page 47 File#: 14-0749, Item#: 4. Not Applicable DISCUSSION On March 13, 2012, in accordance with Resolution 2012-041, the City Council appropriated in the FY 2012-13 Capital Improvement Budget, an amount of $1,130,000 from the General Fund Reserve to DR189 for Bonita Canyon Repair Project and for subsequent environmental mitigation. In order to expedite the repair work, the project was split into two construction contracts. One contract was for the repair work and a secondary contract was issued to address the environmental mitigation needs. The City retained Rick Engineering for the design, permitting, and preparation of bid documents for the repair project. Bonita Canyon has sensitive wetland and upland habitat, any work within the canyon must be permitted by multiple resource agencies including the ACOE, Regional Water Quality Control Board (RWQCB), US Fish and Wildlife Service (USFWS), and California Department of Fish and Wildlife (CDFW). Due to the complex environmental elements encountered, Rick Engineering Company retained Helix Environmental Planning, Inc. (Helix) as a subconsultant to conduct the environmental work needed for the project. On December 31 , 2012, with the assistance of Rick Engineering Company and Helix Environmental Planning (RH Team), the ACOE granted the City of Chula Vista an Emergency Regional General Permit No. 63 permit (RGP63) for the repair project. On March 27, 2013, Cass Construction, Inc. completed the repair work for a final contract amount of $190,543. The project permanently stabilized the existing gabion structure. On July 22, 2014, the ACOE issued an approval letter for the HMMP (See Attachment No. 4). The HMMP approval allowed RH Team to complete the design and the bid package for the remaining environmental restoration and mitigation project. A- Action No.1: Award a Contract to Natures Image for Bonita Canyon Environmental Restoration and Mitigation Project In accordance with provisions in Section 1009 of the City Charter, on December 30, 2014, Chula Vista staff advertised and solicited bids from contractors for Bonita Canyon Environmental Restoration and Mitigation project that implements the wetland and upland environmental mitigation including environmental restoration of disturbed wetland and the enhancement of riparian woodland areas. This contract also includes a 5-year maintenance period as required by the approved HMMP. The deadline for submitting bids for this project was January 16, 2015. The City received only one bid from Natures Image for an amount of$244,602.10 (contractor License No. 720513). Staff reviewed the bid and concluded it is very reasonable in comparison to RH Team's projected estimate of $265,000. Due to unpredictable and poor field conditions, limited access points, and possible inclement weather, staff included a $37,397.90 contingency (15.29%). Under City Council Policy No. 574-01 , if an individual change order causes the cumulative increase in change orders to exceed the Director's authority ("Maximum Aggregate Increase in Change Orders"), then City Council approval is required. The proposed resolution would also authorize the Director of Public Works to approve change orders over and above existing policy limits. The City of Chula Vista Page 2 of 4 Printed on 2/12/2015 powered by Leg 2015-02-17 Agenda Packet Page 48 File#: 14-0749, Item#: 4. aforementioned policy would limit approvals to $20,122.15. In order to expedite the project and avoid delays, approval of this resolution would increase the Director of Public Works' authority to approve change orders, as necessary, up to the contingency amount of $37,397.90, an increase of $17,275.75 over the limit set by Policy No. 574-0. B- Action 2: Enter into an Agreement with Helix Environmental Planning, Inc. (Helix) for Providing Biological Monitoring during the Installation of the Restoration and Mitigation and FOR the Subsequent 5-year Maintenance Period. In addition to the mitigation and maintenance, the HMMP requires that the City retain a second party to provide biological monitoring during the installation of the restoration and mitigation as well as the 5-year maintenance period after installation. Typically, the City would invite consultants to submit proposals for this work in accordance with Chula Vista Municipal Code section 2.56.110; however, in those situations where the City interests would be materially better served by applying a different purchasing procedure, the City Council may waive the standard procedure pursuant to CVMC section 2.56.070(B)(3). In this instance, Helix's familiarity with the environmental aspects of this project, stemming from their four years of work on this project; their interaction with the environmental agencies on this project; and their preparation of the project HMMP, which was approved by the resource agencies, will provide the City with several benefits not available from other consultants: other consultants would require a significant amount of time to familiarize themselves with the particular requirements of this project, and the additional time would increase the cost of the work while delaying implementation of the mitigation measures. Due to these factors, staff believes that negotiating with Helix to perform the work, rather than following the standard procedure, would be in the City's best interests. Having come to this conclusion, staff requested that Helix submit a proposal to conduct the required biological monitoring. City staff and Helix negotiated an agreed price of $95,900 to provide biological monitoring during the installation phase of the restoration and mitigation work and for the subsequent 5-year maintenance period. Staff believes this is a fair and reasonable proposal and therefore recommends retaining Helix the contract for the biological monitoring aspect of this project. A final requirement of the HMMP requires the City enter into a Memorandum of Understanding (MOU) with the ACOE for protecting and preserving Bonita Canyon Mitigation Area in perpetuity. Staff is currently preparing the MOU to be reviewed by the ACOE. Upon obtaining the consent of the ACOE's on the MOU, staff will return to City Council for the approval of the MOU. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS This project will support the City's Strategic Plan as it seeks to enhance the City's Strategic Goals of Healthy Community by preserving the environment within Bonita Canyon Channel. CURRENT YEAR FISCAL IMPACT Approval of the Resolution will result in the establishment of a new CIP, DR200, and transfer of City of Chula Vista Page 3 of 4 Printed on 2/12/2015 powered by Leg 2015-02-17 Agenda Packet Page 49 File#: 14-0749, Item#: 4. $377,900 from DR189 to DR200, both funded from the General Fund. The new CIP will allow the City to pay for environmental restoration, 5-year maintenance and monitoring costs associated with the Bonita Canyon Emergency Repair Project. Sufficient funding is available in DR189 for the required transfer. The following is a breakdown of costs associated with the Bonita Canyon Project: Summary of Costs Amount Amount appropriated from the General Fund Reserves $1 ,130,000 (budgeted in DR189) Bonita Canyon Construction/Repair Project (paid from ($483,233) DR189) Plan development & Permitting the Environmental ($121 ,000) Restoration and Mitigation Project (paid from DR189) Environmental Restoration and Mitigation Project ($282,000)* (required transfer from DR189 to DR200) Biological Monitoring (required transfer from DR189 to ($95,900)* DR200) Remaining balance in DR189 $147,866** * Required transfer from DR189 to DR200 is$377,900 ($282,000+$95,900). **Anticipated to b (DR189) is completed. ONGOING FISCAL IMPACT After completion of the project, this site will require routine maintenance. Funding would be from the Public Works Operating budget as well as Open Space District #14. ATTACHMENTS 1 . Resolutions (No. 2014-076) Nature Image's Bid 2. Helix's Agreement 3. HMMP Approval Letter from the ACOE Staff Contact: Jama/ Naji or Roberto Yano City of Chula Vista Page 4 of 4 Printed on 2/12/2015 powered by Leg 2015-02-17 Agenda Packet Page 50 RESOLUTION NO. 2014-076 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CERTAIN ADDITIONAL SERVICES IN ACCORDANCE WITH ARTICLE I OF THE EXISTING AGREEMENT DATED NOVEMBER 9, 2010. APPROVED IN ACCORDANCE )AIITH COUNCIL RESOLUTION 2010-263, BETtiNI-EEN THE CITY OF CHULA VISTA AND RICK ENGINEERING COMPANY IN THE AMOUNT OF 5121.000 FOR PREPARING AND PERMITTfNTG THE ENVIRONMENTAL MITIGATION FOR BONITA CANYON EMERGENCY REPAIR PROJECT (DR189) WHEREAS. on August 17. 2010, in accordance with Resolution No. 2010-212, the City Council established a new Capital Improvement Project for Bonita Canyon Repairs. project (DR- 189); and WHEREAS. on November 9. 2010. in accordance with Resolution 2010-263. the City Council approved an agreement between the Cite of Chula Vista and the Rick Engineering Company and Helix Environmental Planning ("RH Team") for professional services for preparing plans and specifications for the Bonita Canyon Repair Project ("Agreement with RH Team"): and WHEREAS_ on March 13. 2012_ in accordance with Resolution 2012-041. the City Council appropriated $504,000 from the General Fund Reserve for Fiscal Year 2012 to the existing Capital Improvement Project DR189. for the construction of the Bonita Canyon repairs, environmental permitting fees. and for approving certain additional consultant services in accordance with Article I of the Agreement with RH Team; and WHEREAS. on March 13. 2012. in accordance with Resolution 2012-041, the City Council appropriated an additional S514_000 to DR189 for Bonita Canyon environmental mitigation in the Fiscal Year 2012/2013 Capital Improvement Budget, WHEREAS; while processing plans for repairing the gabion structure with the Resource Agencies, Staff applied for an emergency Regional General Permit No. 6') permit (RGP63) from the Army Corps of Engineers due the vulnerability of the condition of the gabion structure and the threats of major storms; and WHEREAS. on December 31. 2012. the Army Corps of Engineers granted the City a RGP63 permit to reinforce the gabion structure: and WHEREAS- on January 4, 2013. upon obtaining City Manager's approval and upon soliciting three informal bids from contractors. staff retained Cass Construction. Inc. to perform Bonita Canyon Emergency Repair in accordance with provisions in Section 1009 of the City Charter: and 2015-02-17 Agenda Packet Page 51 Resolution No. 2014-076 Page 2 WHEREAS; Cass Construction_ Lnc. completed the emergency repair work on March 27, 2013. As result of completing the emergency work. the potential threat of injury and property damage has been averted due to the combined efforts of the RH Team. City Staff_ and the Resource Agencies; and WHEREAS, since the completion of the construction, the RH Team and Staff have contacted the Resource Agencies on a regular basis to obtain approval of the mitigation phase, but negotiations with the ALOE have been prolonged due to federal budget issues and due to disagreement with ACOE over the City's proposed mitigation in the Habitat Mitigation and Monitoring Plan (HMMP); and WHEREAS, since the RH Team is familiar with the project conditions and is already under contract with the City for doing the original repair work, the RH Team is uniquely qualified to provide the required additional services; accordingly, staff recommends that City Council waive the standard competitive selection process as impractical and, on sole source basis augment the current contract with the RH Team, so they may continue negotiations with the ACOE and produce construction drawings and documentation for the environmental mitigation phase; and WHEREAS, once the Resource Agencies issue their approval for the environmental mitigation, staff will follow the Request for Proposals process and return to Council to award contracts for the construction and implementation of the environmental mitigation and biological monitoring for this project. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista, does hereby (1) waive the competitive selection process as impractical under Chula Vista Municipal Code section 2.56.070.B.3; and (2) on a sole source basis, and in accordance with Article I of the Agreement with RH Team, approve certain additional services in the amount of $121,000 including contingency and certain optional tasks to be authorized at Staffs discretion for the preparation of construction drawings and documentation for the environmental mitigation phase of the Bonita Canyon Emergency Project (DR189) and to continue negotiation with the Resource Agencies to obtain permits for the same. Presented by Approved as to form by Richard A. Hop Kin len R. G ogin Director of Publi orks City-Attorney 2015-02-17 Agenda Packet Page 52 Resolution No. 2014-076 Paae 3 PASSED. APPROVED_ and ADOPTED by the City Council of the City of Chula Vista. California. this 20th day of Mav 2014 by the following vote: AWES: Councilmembers: Aguilar, Bensoussan. Ramirez. Salas and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: None Mcz- Cheryl Cox. Wor ATTEST: 0v { Donna R. Nom's. CMC. City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I. Donna R. Norris, Cite Clerk of Chula Vista. California, do hereby, certiN that the foresoina Resolution No. 2014-076 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 20th day of May 2014. Executed this 20th day of May 2014. Donna R. Norris. CMC, City Clerk 2015-02-17 Agenda Packet Page 53 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY O G n R. Googins City Attorney Dated: L l AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND HELIX ENVIRONMENTAL PLANNING, INC. TO PROVIDE BIOLOGICAL MONITORING SERVICES FOR BONITA CANYON ENVIRONMENTAL RESTORATION AND MITIGATION PROJECT (DR-200) 2015-02-17 Agenda Packet Page 54 Agreement between City of Chula Vista and Helix Environmental Planning,Inc. to Provide Biological Monitoring Services for Bonita Canyon Environmental Restoration and Mitigation Project(DR200) This agreement (Agreement), effective , 2015, is between the City-related entity whose name and business form is indicated on Exhibit A, Paragraph 2, (City), and the entity whose name, business form,place of business and telephone numbers are indicated on Exhibit A, Paragraphs 4 through 6, (Consultant), and is made with reference to the following facts: RF,CITALS WHEREAS, on August 17, 2010, in accordance with Resolution No. 2010-212, the City Council established a new Capital Improvement Project for Bonita Canyon Repairs, project(DR- 189); and WHEREAS, on November 9, 2010, in accordance with Resolution 2010-263, the City Council approved an agreement between the City of Chula Vista-and the Rick Engineering Company and Helix Environmental Planning ("RH Team") for professional services for preparing plans and specifications for the Bonita Canyon Repair Project; and WHEREAS, on December 31, 2012, the Army Corps of Engineers (ACOE) granted the City a RGP63 permit to reinforce the gabion structure; and WHEREAS, On March 27, 2013, Cass Construction, Inc. completed the emergency repair work, as result of completing the emergency work, the potential threat of injury and property damage has been averted due to the combined efforts of the RH Team, City Staff, and the Resource Agencies; and WHEREAS, On July 22, 2014, the ACOE issued an approval letter for the Habitat Mitigation and Monitoring Plan (HMMP), where that HMMP approval allowed RH Team to complete the design and the bid package for the remaining enviromnental restoration and mitigation project; and WHEREAS, In accordance with provisions in Section 1009 of the City Charter, on December 30, 2014, Chula Vista staff advertised and solicited bids from contractors for Bonita Canyon Environmental Restoration and Mitigation project that implements the wetland and upland environmental mitigation, said contract also includes a 5-year maintenance period as required by the approved HMMP; and WHEREAS, the lowest bid for said contract was submitted by Natures Image, Inc. (Contractor License No. 720513) in the amount of$245,000; and Page I Two Party Agreement Between the City of Chula Vista an Helix Environmental Planning Inc 2015-02-17AUWPiR)W,hz13rainlBonita Canyon120151-1113 2 10 201517wo PertyConsultantAgreement Heft doe Page 55 I I WHEREAS, in addition, the HMMP requires that the City retain a second party to provide biological monitoring during the installation of the restoration and mitigation as well as the 5-year maintenance period after installation; and WHEREAS, since Helix Environmental Planning, Inc. (Helix) is very familiar with all aspect of this project, and has established a working relationship with the ACOE, staff recognizes the advantage of retaining Helix for the biological monitoring efforts; and WHEREAS, Staff and Helix negotiated the contract amount for such services where the final total amount negotiated is $95,900; and WHEREAS, Staff believes Helix's requested amount is fair and reasonable and therefore recommends retaining Helix for such work. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista, does hereby waive the competitive selection process as impractical under Chula Vista Municipal Code section 2.56.070.B.3; and on a sole source basis, and in accordance with Article I of the Agreement, enter into agreement with Helix in the amount of $95,900 including contingency for the providing biological monitoring for Bonita Canyon Environmental Restoration and Mitigation project [End of Recitals. Next Page Staris Obligatory Provisions.] OBLIGATORY PROVISIONS PAGES NOW, THEREFORE, for valuable consideration the City and Consultant do hereby mutually agree as follows: All of the Recitals above are incorporated into this Agreement by this reference. ARTICLE I. CONSULTANT'S OBLIGATIONS A. General 1. General Duties. Consultant shall perform all of the services described on Exhibit A, Paragraph 7 (General Duties). 2. Scope of Work and Schedule. In performing and delivering the General Duties, Consultant shall also perform the services, and deliver to City the "Deliverables" described in Exhibit A, Paragraph 8, entitled "Scope of Work and Schedule," according to, and within the time frames set forth in Exhibit A, Paragraph S, time being of the essence of this agreement. The General Duties and the work and Deliverables required in the Scope of Work and Schedule shall be referred to as the"Defined Services." Failure to complete the Defined Services by the times indicated does not, except at the option of the E City,terminate this Agreement. Page 2 Two Party Agreement Between the City of Chula Vista an Helix Environmental Planning Inc 2015-02-17AA91^Fh97 �,Drain1Banita Canyon120151A113 210.20151 Two Party ConsuitantAgreement Helix.doc Page 56 a. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time, reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with the reduction. b. Additional Services. In addition to performing the Defined Services, City may require Consultant to perform additional consulting services related to the Defined Services (Additional Services), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 10(C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. 3. Standard of Care. The Consultant expressly warrants that the work to be performed pursuant to this Agreement, whether Defined Services or Additional Services, shall be performed in accordance with the standard of care ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. a. No Waiver of Standard of Care. Where approval by City is required, it is understood to be conceptual approval only and does not relieve the Consultant of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissiofis, noncompliance with industry standards, or the willful misconduct of the Consultant or its subcontractors. B. Application of Laws. Should a federal or state law pre-empt a local law, or regulation, the Consultant must comply with the federal or state law and implementing regulations. No provision of this Agreement requires the Consultant to observe or enforce compliance with any provision, perform any other act, or do any other thing in contravention of federal, state, territorial, or local law, regulation, or ordinance. If compliance with any provision of this Agreement violates or would require the Consultant to violate any law, the Consultant agrees to notify City immediately in writing. Should this occur, the City and the Consultant agree that they will make appropriate arrangements to proceed with or, if necessary, amend or terminate this Agreement, or portions of it, expeditiously. 1. Subcontractors. Consultant agrees to take appropriate measures necessary to ensure that all participants utilized by the Consultant to complete its obligations under this Agreement, such as subcontractors, comply with all applicable laws, regulations, ordinances, and policies, whether federal, state, or local, affecting Project implementation. In addition, if a subcontractor is expected to fulfill any responsibilities of the Consultant under this Agreement, the Consultant shall ensure that the subcontractor carries out the Consultant's responsibilities as set forth in this Agreement. C. Insurance f Page 3 Two Party Agreement Behveen the City of Chula rista an Helix Environmental Planning Inn 2015-02-17JAAY&kV 9)rrn DralutBonita Canyon420151A113 2 10 20151 Two PartyConsultaniAgreement Helix.doc Page 57 € 1. General. Consultant must procure and maintain, during the period of performance of this Agreement, and for twelve months after completion, policies of insurance from insurance companies to protect against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work under this Agreement and the results of that work by the Consultant, his agents, representatives, employees or subcontractors, and provide documentation of same prior to commencement of work. 2. Minimum Scope of Insurance. Coverage must be at least as broad as: a. CGL. Insurance Services Office Commercial General Liability coverage (occurrence Form CG0001). b. Auto. Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). c. WC. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. d. E&O. Professional Liability or Errors & Omissions Liability insurance appropriate to the Consultant's profession. Architects' and Engineers' coverage is to be endorsed to include contractual liability. 3. Minimum Limits of Insurance. Consultant roust maintain limits no less than those included in the table below: i. General Liability: $1,000,000 per occurrence for bodily injury, personal injury, (Including (including death), and property damage. If Commercial General operations, Liability insurance with a general aggregate limit is used, either products and the general aggregate limit must apply separately to this completed Project/location or the general aggregate limit must be twice the operations, as required occurrence limit. applicable ii. Automobile $1,000,000 per accident for bodily injury, including death, and Liability: property damage. iii. Workers' Statutory Compensation $1,000,000 each accident Employer's $1,000,000 disease-policy limit Liability: $1,000,000 disease-each employee iv. Professional $1,000,000 each occurrence Liability or Errors &Omissions Liability: 4. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer will Page 4 Two Party Agreement Between the City of Chula Pista an Helix Environmental Planning Inc 2015-02-17ANkWit"DrainWonitaCanyon120151AI13 210 20151TwoPartyConsultantAgreementHeftdoc Page 58 i reduce or eliminate such deductibles or self-insured retentions as they pertain to the City, its officers, officials, employees and volunteers; or the Consultant will provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. 5. Other Insurance Provisions. The general liability, automobile liability, and where appropriate, the worker's compensation policies are to contain, or be endorsed to contain, the following provisions: a. Additional Insureds. City of Chula Vista, its officers, officials, employees, agents, and volunteers are to be named as additional insureds with respect to all policies of insurance, including those with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Consultant, where applicable, and, with respect to liability arising out of work or operations performed by or on behalf of the Consultant, including providing materials, parts or equipment furnished in connection with such work or operations. The general liability additional insured coverage must be provided in the form of an endorsement to the Consultant's insurance using ISO CG 2010 (11/85) or its equivalent. Specifically, the endorsement must not exclude Products/Completed Operations coverage. b. Primary Insurance. The Consultant's General Liability insurance coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance of the Consultant and in no way relieves the Consultant from its responsibility to provide insurance. c. Cancellation. The insurance policies required by this Agreement shall not be canceled by either party, except after thirty days' prior written notice to the City by certified mail, return receipt requested. The words "will endeavor" and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents, or representatives"shall be deleted from all certificates. f d. Waiver of Subrogation. Consultant's insurer will provide a Waiver of Subrogation in favor of the City for each required policy providing coverage for the term required by this Agreement. In addition, Consultant waives any right it may have or may obtain to subrogation for a claim against the City. i i 6. Claims Forms. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are written on a claims-made form: I a. Retry Date. The "Retry Date" must be shown, and must be before the date of the Agreement or the beginning of the work required by the Agreement. I Page 5 Two Pa Agreement Between the City of Chula Vista an Helix Environmental Planning Ina I 2015-02-17 ERr "prainl Bonita Canyon120151A113 2 10 20151 7"wo PartyConsultantAgreement Helixdoe Page 59 f b. Maintenance and Evidence. Insurance must be maintained and evidence of insurance must be provided for at least five years after completion of the work required by the Agreement. C. Cancellation. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a "Retro Date" prior to the effective date of the Agreement, the Consultant must purchase "extended reporting" coverage for a minimum of five years after completion of the work required by the Agreement. d. Copies. A copy of the claims reporting requirements must be submitted to the City for review. 7. Acceptability of Insurers. Insurance is to be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best's rating of no less than A V. If insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of EIigible Surplus Lines Insurers (LESLI) with a current A.M. Best's rating of no less than A X. Exception may be made for the State Compensation Fund when not specifically rated. S. Verification of Coverage. Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by Section I.C. of this Agreement. The endorsements should be on insurance industry forms, provided those endorsements or policies conform to the requirements of this Agreement. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. 9. Subcontractors. Consultant must include all subconsultants as insureds under its policies or furnish separate certificates and endorsements for each subconsultant. All coverage for subconsultants is subject to all of the requirements included in these specifications. 10. Not a Limitation of Other Obligations. Insurance provisions under this Article shall not be construed to limit the Consultant's obligations under this Agreement, including Indemnity. 11. Additional Coverage. To the extent that Insurance coverage exceeds the minimums identified in section 3, recovery shall not be limited to the insurance minimums, but shall instead extend to the actual policy limits. D. Security f©r Performance 1. Performance Bond, In the event that Exhibit A, at Paragraph 18, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond, in the amount indicated at Exhibit A, Paragraph 18, in the form prescribed by the City and by such Page 6 Two Party Agreement Between the City of Chula Vista an Helix Environmental Planning Inc- 2015-02-17AWWeVi rS ,n DrainiBonita Canyon120151A113 2 10 20151 nvo PartyConsultantAgreement Hel&dae Page 60 i sureties which are authorized to transact such business in the State of California, listed as approved by the United States Department of Treasury Circular 570, htt2://www.fns.treas.goy/c570, and whose underwriting limitation is sufficient to issue bonds in the amount required by the Agreement, and which also satisfy the requirements stated in Section 995.660 of the Code of Civil Procedure, except as provided otherwise by laws or regulations. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act. Surety companies must be duly licensed or authorized in the jurisdiction in which the Project is located to issue bonds for the limits so required. Form must be satisfactory to the Risk Manager or City. 2. Letter of Credit. In the event that Exhibit A, at Paragraph 18, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at its unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit," in Exhibit A, Paragraph 18. 3. Other Security. In the event that Exhibit A, at Paragraph 18, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. E, Business License. Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. ARTICLE 11. CITY OBLIGATIONS A. Consultation and Cooperation. City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule, and to provide direction and guidance to achieve the objectives of this Agreement. The City shall allow Consultant access to its office facilities, files and records, as deemed necessary and appropriate by the City, throughout the term of this Agreement. In addition, City agrees to provide the materials identified at Exhibit A, Paragraph 9, with the understanding that delay in the provision of those materials beyond thirty days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance. B. Compensation. 1. Following Receipt of Billing. Upon receipt of a properly prepared bill from Consultant, submitted to the City as indicated in Exhibit A, Paragraph 17, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 17, Page 7 T}voPaty A�gCeemnent Between the City of Chula rista an Helix Environmental Planning Inc- 2 015-02-17 DraiMBonita Canyon120151A113 210 20151Two PartyConsultantAgreement Helix doe Page 61 City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 10, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in Paragraph 18 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A,Paragraph 11. 2. Supporting Information. Any billing submitted by Consultant shall contain sufficient information as to the propriety of the billing, including properly executed payrolls, time records, invoices, contracts, or vouchers describing in detail the nature of the charges to the Project in order to permit the City to evaluate that the amount due and payable is proper, and such billing shall specifically contain the City's account number indicated on Exhibit A,Paragraph 17(C)to be charged upon making such payment. 3. Exclusions. In determining the amount of the compensation City will exclude any cost: 1) incurred prior to the effective date of this Agreement; or 2) arising out of or related to the errors, omissions, negligence or acts of willful misconduct of the Consultant, its agents, employees, or subcontractors. a. Errors and Omissions. In the event that the City Administrator determines that the Consultant's negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negfigence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing in this paragraph is intended to limit City's rights under other provisions of this Agreement. 4. Payment Not Final Approval. The Consultant understands and agrees that payment to the Consultant for any Project cost does not constitute a City final decision about whether that cost is allowable and eligible for payment under the Project and does not constitute a waiver of any violation of Consultant of the terms of the Agreement. The Consultant acknowledges that City will not make a final determination about the eligibility of any cost until the final payment has been made on the Project or the results of an audit of the Project requested by the City has been completed, whichever occurs latest. If City determines that the Consultant is not entitled to receive any portion of the compensation due or paid, City will notify the Consultant in writing, stating its reasons. The Consultant agrees that Project closeout will not alter the Consultant's responsibility to return any funds due City as a result of later refunds, corrections, or other similar transactions; nor will Project closeout alter the right of City to disallow costs and recover funds provided for the Project on the basis of a later audit or other review. a. Consultant's Obligation to Pay. Upon notification to the Consultant that specific amounts are owed to City, whether for excess payments or disallowed costs, the Consultant agrees to remit to City promptly the amounts owed, including applicable I` interest. Page 8 Two Party Agreement Between lire City of Chula Vista an Helix Environmental Planning Ina 2015-02-17A 95P^FRS"DrainlBonita Canyon420ISiA113 210 Z0154Two PartyConsultantAgreement Hefixdoe Page 62 i i ARTICLE III. ETHICS A. Financial Interests of Consultant 1. Consultant is Designated as an FPPC Filer, If Consultant is designated on Exhibit A, Paragraph 14, as an "FPPC filer," Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 14 of Exhibit A, or if none are specified,then as determined by the City Attorney. 2. No Participation in Decision. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. 3. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with'Consultant's duties under this Agreement, 4. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. 5. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney if Consultant learns of an economic interest of Consultant's that may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. 6. Specific Warranties Against Economic Interests. Consultant warrants, represents and agrees that: a. Neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents (Consultant Associates) presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, (Prohibited Interest), other than as listed in Exhibit A,Paragraph 14. i Page 9 Two Party Agreement Between the City of Chula Vista an Helix environmental Planning Inc, 2 015-02-17A&W^&f8"Drain)Bonita Canyon12015W13 2 10 2015Mvo PartyConsultantAgreement Helm doe Page 63 b. No promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for twelve months thereafter. c. Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for twelve months after the expiration of this Agreement, except with the written permission of City. i d. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party that may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. IV. LIQUIDATED DAMAGES A. Application of Section. The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 13. 1. Estimating Damages. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in performance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. 2. Amount of Penalty. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the Consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 13 (Liquidated Damages Rate). 3. Request for Extension of Time. If the performance of any act required of Consultant is [ directly prevented or delayed by reason of strikes, lockouts, labor disputes, unusual governmental delays, acts of God, fire, floods, epidemics, freight embargoes, or other causes beyond the reasonable control of the Consultant, as determined by the City, Consultant shall be excused from performing that act for the period of time equal to the period of time of the prevention or delay. In the event Consultant claims the existence of such a delay, the Consultant shall notify the City's Contract Administrator, or designee, in writing of that fact within ten calendar days after the beginning of any such claimed delay. Extensions of time will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. ARTICLE V. INDEMNIFICATION A. Defense,Indemnity, and Hold Harmless. Page 10 Two Party Agreement Between the City of Chula Vista an Helix Environmental Planning I= 2015-02-17ji kSV&DrainiBonita CanyoM20154A113 2 10 2015MPo PartyConsultantAgreement Helix doc Page 64 h 1. General Requirement. To the maximum extent allowed by law, Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers, agents and employees, from and against any and all claims, demands, causes of action, costs, expenses, (including reasonable attorney's fees and actual costs), liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of Consultant, its officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of the Defined Services, the results of such performance, or this Agreement. This indemnity provision does not include any claims, damages, liability, costs and expenses arising from the sole negligence or sole willful misconduct of the City, its officers, employees. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party. 2. Design Professional Services. Notwithstanding the forgoing, if the services provided under this Agreement are design professional services, as defined by California Civil Code section 2782.5, as may be amended from time to time, the defense and indemnity obligation under Section 1, above, shall be limited to the extent required by California Civil Code section 2782.8. 3. Costs of Defense and Award. Included in the obligations in Sections A.1 and A.2, above, is the Consultant's obligation to defend, at Consultant's own cost, expense and risk, any and all suits, actions or other legal proceedings, that may be brought or instituted against the City, its directors, officials, officers, employees, agents and/or volunteers, subject to the limitations in Sections A.I. and A.2. Subject to the limitations in Sections A.1. and A.2., Consultant shall pay and satisfy any judgment, award or decree that may be rendered against City or its directors, officials, officers, employees, agents and/or volunteers, for any and all related legal expenses and costs incurred by each of them. 4. Insurance Proceeds. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials, officers, employees, agents, and/or volunteers. I 5. Declarations. Consultant's obligations under Article V shall not be limited by any prior or subsequent declaration by the Consultant. 6. Enforcement Costs. Consultant agrees to pay any and all costs City incurs enforcing the F indemnity and defense provisions set forth in Article V. 7. Survival. Consultant's obligations under Article V shall survive the termination of this Agreement. 8. No Alteration of Other Obligations. This Article V, shall in no way alter, affect or modify any of the Consultant's other obligations and duties under this Agreement. Page 11 2015-02-17o� �ent Between llre City ofClrula lrsta an Helix Environmental Planning Ina Page 65 DrainWonita Canyoni201SUIM 210201511W PartyConsultantAgreementHelixdoe ARTICLE VI. TERMINATION OF AGREEMENT A. Termination for Cause. If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation, in an amount not to exceed that payable under this Agreement and less any damages caused City by Consultant's breach, for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination. B. Termination of Agreement for Convenience of City. City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation, in an amount not to exceed that payable under this Agreement, for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth in this section. ARTICLE VII. RECORD RETENTION AND ACCESS A. Record Retention. During the course of the Project and for three (3) years following completion, the Consultant agrees to maintain, intact and readily accessible, all data, documents, reports, records, contracts, and supporting materials relating to the Project as City may require. B. Access to Records of Consultant and Subcontractors. The Consultant agrees to permit, and require its subcontractors to permit City or its authorized representatives, upon request, to inspect all Project work, materials, payrolls, and other data, and to audit the books, records, and accounts of the Contractor and its subcontractors pertaining to the Project. E (f I C. Project CIoseout. The Consultant agrees that Project closeout does not alter the reporting ' and record retention requirements of this Agreement. 1 f ARTICLE VIII. PROJECT COMPLETION, AUDIT, AND CLOSEOUT Page 12 Two Party Agreement Between the City of Gyula PUN an Helix Environmental Planning Inc 2015-02-17AWy^VA&Y 6DrainlBonitaCanyonl 2015W1132IO201 5l TwaPartyConsultant AgreementHelixdoe Page 66 A. Project Completion. Within ninety (90) calendar days following Project completion or E termination by City, Consultant agrees to submit a final certification of Project expenses and audit reports, as applicable. [ E B. Audit of Consultants. Consultant agrees to perform financial and compliance audits the City may require. The Consultant also agrees to obtain any other audits required by City. Consultant agrees that Project closeout will not alter Consultant's audit responsibilities. Audit costs are allowable Project costs. C. Project CIoseout. Project closeout occurs when City notifies the Consultant that City has closed the Project, and either forwards the final payment or acknowledges that the Consultant has remitted the proper refund. The Consultant agrees that Project closeout by City does not invalidate any continuing requirements imposed by the Agreement or any unmet requirements set forth in a written notification from City ARTICLE IX. MISCELLANEOUS PROVISIONS 'r E A. Assignability. The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or notation), without prior written consent of City. E i 1. Limited Consent. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 16 to the subconsultants identif ed as "Permitted Subconsultants." B. Ownership, Publication, Reproduction and Use of Material. All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. C. Independent Contractor. City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, independent contractors and shall not be deemed to be employees of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or Page 13 Two Party Agreement Between the City of Chula Vista an Helix Environmental Planning fur- 2015-02-17AWY^FAM6 Draint Bonita Canyon120151A113 2 10 20151 Two PartyConsultantAgreement Hellxdoc Page 67 any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard to them. 1. Actions on Behalf of City. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever, as an agent or otherwise. Consultant shall have no authority, express or implied, to bind City or its members, agents, or employees,to any obligation whatsoever, unless expressly provided in this Agreement. 2. No Obligations to Third Parties. In connection with the Project, Consultant agrees and shall require that its agents, employees, subcontractors agree that City shall not be responsible for any obligations or liabilities to any third party, including its agents, employees, subcontractors, or other person or entity that is not a party to this Agreement. f Notwithstanding that City may have concurred in or approved any solicitation, subagreement, or third party contract at any tier, City shall have no obligation or liability to any person or entity not a party to this Agreement. I D. Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this Agreement, against City unless a claim has first been presented in writing and filed with City and acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used bar City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. E. Administration of Contract. Each party designates the individuals (Contract Administrators) indicated on Exhibit A, Paragraph 12, as that party's contract administrator who is authorized by the party to represent it in the routine administration of this Agreement. F. Term. This Agreement shall terminate when the parties have complied with all executory provisions hereof. G. Statement of Costs. In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in the report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. i H. Consultant is Real Estate Broker and/or Salesman. If the box on Exhibit A, Paragraph 15 is marked, the Consultant and/or its principals is/are licensed with the State of California or some other state as a real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor its principals are licensed real estate brokers or salespersons. I. Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party Page 14 Two Party Agreement Between the GYty of Chula Vista an Helix Environmental Planning Inc. 2015-02-17 15W&W6 Drain/Bonita Canyonl20154AII3 2 10 2015lTwo Party ConsuItanM reema t Helix doe Page 68 shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified in this Agreement as the places of business for each of the designated parties. J. Integration. This Agreement, together with any other written document referred to or contemplated in it, embody the entire Agreement and understanding between the parties relating to the subject matter hereof Neither this Agreement nor any provision of it may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. K. Capacity of Parties. Each signatory and party to this Agreement warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all necessary resolutions or other actions have been taken so as to enable it to enter into this Agreement. L. Governing LawNenue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula.Vista, or as close thereto as possible. Venue for this Agreement, and performance under it, shall be the City of Chula Vista. (End of page. Next page is signature page.) i f i Page 15 Two Party Agreement Between the City of Chula Vista an Hells Environmental Planning Ina 2 015-02-17JAM€k4Pif,4lb9rn Drainl Bonita Canyon120151A113 2 10 20151Two PanyConsultantAgreement Heli.--doe Page 69 Signature Page to Agreement between City of Chula Vista and Felix Environmental Planning,Inc.to Provide Biological Monitoring Services for Bonita Canyon Environmental Restoration and Mitigation Project(YDR200) IN WITNESS WHEREOF, City and Consultant have executed this Agreement, indicating that they have read and understood same, and indicate their full and complete consent to its terms: City of Chula Vista By: Mary Casillas Salas, Mayor Attest: Donna Norris, City Clerk Approved as to form: Glen R. Googins, City Attorney By; GU Pfd Tom Huffman,Helix Envi ental Planning, Inc. Biological Services Division Manager E Page 16 Two Party Agreement Between the C}ty of Chula Vista an Helix Environmental Planning Ina Ca Usersl Toni MAppDatalLocaAMicrosoftlWindows4Temporary Internet Fllesl Content,Ot tlooklHI27QQ2111Two Party ConsultanfAgreentertt Helix.doc 2015-02-17 Agenda Packet Page 70 Exhibit List to Agreement: Exhibit A f _ l i 1 i I i i i I I I Page 17 Two Party Agreement Between the City of Chula Vista an Helix Environmental Planning Inc 2015-02-17A Draklfonita Canyon120151A113 2 10 20151Tivo Par&ConsultantAgreementHelixdoe Page 71 E i Exhibit A To Agreement between City of Chula Vista and Helix Environmental Planning,Inc. to Provide Biological Monitoring Services for Bonita Canyon Environmental Restoration and Mitigation Project(DR200) E 1. Effective Date: The Agreement shall take effect upon full execution of the Agreement, as of E E the effective date stated on page 1 of the Agreement. 2. City-Related Entity: {X) City of Chula Vista, a municipal chartered corporation of the State of California { ) The Chula Vista Public Financing Authority, a ( ) The Chula Vista Industrial Development Authority, a ( ) Other: , a [insert business form] (City) 3. Place of Business for City: E E I City of Chula Vista ! 276 Fourth Avenue ' Chula Vista, CA 91910 4. Consultant: Helix Environmental Planning, Inc. 5. Business Form of Consultant: i ( ) Sole Proprietorship ( ) Partnership (X) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: HELIX Environmental Planning, Inc. 7578 El Cajon Boulevard Suite 200 La Mesa, CA 91942 I Page 18 Two Party Agreement Between the City of Chula Vista an Helix Environmental Planning Ina 2015-02-17ARW^YA9&6 DrainiBonita Canyon120151A113 2 10 2015171vo PartyConsuliantAgreement Helix.dac Page 72 TEL: 619.462.1515 FAX: 619.462.0552 Website: www.helixepi.com Email: Tomes @helixepi.com 7. General Duties: Task 1 Biological Mitigation Installation Monitoring and 5-Year Monitoring. ]a Installation Monitoring. HELIX will monitor the installation of plant and seed material in the wetland and upland mitigation areas. Installation monitoring will include attendance at one pre-construction meeting, monitoring site grading and initial weeding, as needed, inspection of construction fencing prior to the start of restoration activities, and part-time monitoring as needed during plant and seed installation. Following installation completion, the restoration specialist will assess and photograph the upland and wetland mitigation areas to document the baseline conditions. Following installation, a HELIX biologist will monitor maintenance activities conducted by the maintenance crews once a month for the upland and wetland mitigation areas during the initial 120-day establishment period. Following the end of this period, HELIX will prepare a letter for submittal to the appropriate regulatory agencies stating that the installation is complete and the 5-year maintenance and monitoring period has begun. Any changes to the upland or wetland mitigation, as compared to the respective mitigation plans, will be documented in the letter. Pre- and post-installation photographs also will be included in the letter. 1b. Maintenance Monitoring. HELIX will continue to monitor the mitigation areas for a 5-year period after the 120-day establishment period. Monitoring visits will be conducted to the upland and wetland mitigation areas S times per year during Years 1 through 3; and in Years 4 and 5 monitoring will be conducted quarterly (4 visits per respective year). Monitoring memos noting issues with plant establishment, irrigation, sediment control, etc., will be provided, as necessary, to the maintenance personnel. The installation/maintenance contractor(s) will complete maintenance requests from HELIX within 14 days of any written request or monitoring report. le. Technical Monitoring. In addition to maintenance monitoring visits, HELIX will conduct annual technical monitoring of the upland and wetland mitigation areas each year during the 5-year maintenance and monitoring period. Technical monitoring will be scheduled for spring to coincide with the peak growing season for most native upland herbs and shrubs. The exact timing of the visits will depend on site and weather conditions. Due to the small size of the mitigation areas, annual monitoring will consist of a visual assessment all 5 years of the maintenance and monitoring period. Monitoring will include assessments of plant health, estimates of native and non-native cover, observations of plant recruitment, lists of wildlife and plant species observed on site, and photographic documentation. For the wetland creation area, a California Rapid Assessment Methodology (CRAM) analysis also will be conducted in Years 3 and 5 of Page 19 Two Party Agreement Between the City of Chula Vista an Helix Environmental Planning Inn 2015-02-173 Aft& OWN DraiMBonita CanyoM20151A113 2 10 201SITwo PartyConcultantAgreemeirt Helix doe Page 73 I the 5-year monitoring effort. Enhancement areas also will be assessed visually during each annual assessment. HELIX will prepare separate annual reports for the upland and wetland mitigation areas at the end of each year of the 5-year monitoring effort. The reports will include botanical observations noted above and a summary of whether the restoration effort is progressing and meeting the required success standards. The report also will recommend any remedial measures that may be required. In addition, for the wetland creation area, the results of the CRAM analysis will be incorporated into the wetland mitigation annual report for Years 3 and 5. After review by Client, HELIX will submit copies of the annual report to the appropriate regulatory agencies. 1 s Id Sign Off Coordination. HELIX will coordinate and attend 1 sign off visit with the E U.S. Army Corps of Engineers for the wetland mitigation and with the USFWS and CDFW for the upland mitigation area. HELIX will assist the Client in obtaining final sign off letter from the respective agencies. HELIX has assumed 16 hours of Senior Scientist time and 16 hours of Project Manager time for this task. le. Optional Contingency Task. Under this task, HELIX will provide out of scope services that will be approved in advance by the Client, in writing. For example, if the mitigation site is not ready to be signed off at the end of five years, HELIX will provide an additional (out of scope) year of monitoring to ensure that the mitigation effort is successful. SCHEDULE HELIX will continue to work with Client in a timely and professional manner in accordance with the Terms and Conditions attached and incorporated herein by reference as Exhibit A. These Terms and Conditions are a material part of this Agreement. COST ESTIMATE AND PAYMENT PROCEDURES HELIX shall provide the above services with cost estimate not to exceed $95,900, which is provided below in a breakdown by task. All work shall be invoiced on a time and materials basis pursuant to Exhibit B, Schedule of Fees. Payment terms are pursuant to the Terms and Conditions referenced herein. Task Number Task Name Cost 1 a Installation Monitoring $19,300 lb Maintenance Monitoring 17,900 le Technical Monitoring 43,200 1d Sign Off Coordination 5,500 le Optional Contingency Task 10,000 TOTAL $95,900 Page 20 Two Party Agreement Between the City of Chula Vista an Helix.Environmental.Planning 1ne- 2015-02-17JAAW^A S WJn Drain4Bonita Canyon120151A113 2 10 20151Two PartyConsultantAgreementHelixdoe Page 74 I A. Date for Commencement of Consultant Services: (X)Same as Effective Date of Agreement ( ) Other: B. Dates or Time Limits for Delivery of Deliverables: Deliverable No. 1: Deliverable No. 2: Deliverable No. 3: C. Date for completion of all Consultant services:_ 8. Materials Required to be Supplied by City to Consultant: 9. Compensation: A. ( ) Single Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: , payable as follows: Milestone or Event or Deliverable Amount or Percent of Fixed Fee i ( ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans that must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit I against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Consultant shall have represented in writing that said percentage of completion of the phase has been performed by the Consultant. The practice of making interim monthly advances shall not convert this agreement to j a time and.materials basis of payment. i Page 21 Two Party Agreement Between lite Oty of Chula Vista an Helix Environmental Planning Ina 2015-02-17d4 j4F#&]np rainjBon1taCanyon120151A 113 2 10 20151 Two Party ConsultamAgreement Helix.doe Page 75 B. ( ) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. Phase Fee for Said Phase 1. $ 2. $ 3. $ { ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid, Any payments made hereunder shall be considered as interest free loans that must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 18 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Consultant shall have represented in writing that said percentage of completion of the phase has been performed by the Consultant. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. (X) Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay E Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule herein below according to the following terms and conditions: i (1) (X)Not-to-Exceed Limitation on Time and Materials Arrangement i Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $95,900 including all Materials, and other"reimbursables" (Maximum Compensation), i Page 22 T va Pa A�C r ement Between the CYty of Chula Vista an Helix Environmental Planning Inc 2015-02-17J'jQjaY SA7ln DralnlBonita Canyonl26151A113 2 10 20151Two PartyConsultantAgreement Fleft doe Page 76 I (2) { ) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to $ (Authorization Limit), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. See Exhibit B for wage rates. O Hourly rates may increase by 6% for services rendered after [month], 20 delay j in providing services is caused by City. 11. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: { j None, the compensation includes all costs. Cost or Rate ( ) Reports, not to exceed$ $ ( } Copies,not to exceed $ Y $ ( } Travel, not to exceed $ $ ( } Printing, not to exceed$ $ ( ) Postage, not to exceed$ $ ( ) Delivery, not to exceed $ $ ( ) Outside Services: $ ( ) Other Actual Identifiable Direct Costs: $ not to exceed $ $ not to exceed $ $ 12. Contract Administrators: City:Jamal Naji, Associate Civil Engineer I Consultant: Tom Huffman, Biological Services Division Manager 13. Liquidated Damages Rate: i { ) $ per day. ( } Other: Page 23 2015-02-1T 6 n {{e�e ent Between glee City of Chula Pista an Helix Environmental Planning Ina Page�� ingewrrarin ArainlBonita Canyoni20151 A113 210 20151 Tlvo PartyConsultantAgreement Helix.rtoc 14. Statement of Economic Interests, Consultant Reporting Categories,per Conflict of Interest Code (Chula Vista Municipal Code chapter 2.02): (X)Not Applicable.Not an FPPC Filer. { ) FPPC Filer ( ) Category No. 1. Investments, sources of income and business interests. l ( ) Category No. 2. Interests in real property. ( } Category No. 3. Investments, business positions, interests in real property, and sources of income subject to the regulatory, permit or licensing authority of the department administering this Agreement. ( ) Category No. 4. Investments and business positions in business entities and sources of income that engage in land development, construction or the acquisition or sale of real property. - ( ) Category No. 5. Investments and business positions in business entities and sources of income that, within the past two years, have contracted with the City of Chula Vista or the City's Redevelopment Agency to provide services, supplies, materials, machinery or equipment. ( ) Category No. 6. Investments and business positions in business entities and sources of income that, within the past two years, have contracted with the department administering this Agreement to provide services, supplies, materials, machinery or equipment. ( } List Consultant Associates interests in real property within 2 radial miles of Project Property, if any: i i 15. O Consultant is Real Estate Broker and/or Salesman i 16. Permitted Subconsultants: 17. Bill Processing: i Page 24 Two Party Agreement Between the Chy of Chula Vista an Helix Environmental Planning Ina 2015-02-17JA fgr,%&r)n DudntBonita Canyon1 OBW11321020UTwo PartyConsultantAgreement Helr.Vdoe Page 78 i A. Consultant's Billing to be submitted for the following period of time: (X)Monthly { ) Quarterly O Other: B. Day of the Period for submission of Consultant's Billing: ( ) First of the Month { ) 15th Day of each Month { ) End of the Month ( ) Other: C. City's Account Number: [TO BE ASSIGNED] 18. Security for Performance ( ) Performance Bond, $ ( ) Letter of Credit, $ { ) Other Security: Type: Amount: $ O Retention. If this space is checked,then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner,the City shall be entitled to retain, at their option, either the following"Retention Percentage"or"Retention Amount"until the City determines that the Retention Release Event, listed below, has occurred: I ( ) Retention Percentage: O Retention Amount: $ Retention Release Event: ( ) Completion of All Consultant Services ( ) Other: f ( ) Other: The Retention Amount may be released on a monthly basis provided that ' Consultant has performed said monthly services to the sole satisfaction of the Assistant City Manager/Director of Development Services or his designee. I Page 25 Two Party Agreement Between the City of Chula Vista an Helix Environmental Planning Ine. 2015-02-17J4 1WV,fS)N)yDrainlBo nitaCanyon120151 A113 2 10 20151 71voPartyConsu ltamAgreementHelixdoe Page 79 i EXHIBIT B SCHEDULE of FEES HELIX �S?vkpnr�€aiital P[aarmrnq Cabs€€Ititt Servicr~s Consulting services performed by HELIX typically include,but are not necessarily limited to,office,field,meetings,hearings and travel time.Consulting services for expedwitness review, deposition,andlor testimony will be provided at one and one-half times our professional rates. Direct Casts Certain identifiable direct costs will be charged to the project at cost plus ten percent.Examples of direct costs Include subconsultants,vehicle or equipment rentals,airplane and train fares, parking,per diem and lodging,mileage,communications,reproduction,and supplies.A 4-wheel drive premium will be charged at$25.00 per project day.There will be additional charges for plotting,color printing,aerial photographs and GPS services. 1- Itt Invoices will be submitted monthly.Payment on invoices is due within thirty days of receipt.If payment is not paid when due,then such sum shall bear interest at f%%per month on the unpaid balance,not to exceed the maximum legal rate of interest. Professional Rates Current hourly ratos for consulting services: Principal $205.00-215,00 Principal Planner $180.00-205,00 Principal Biologist $180.00-205,00 Principal Permitting Specialist $170.00-200.00 Sr,Project Manager 1-III $140.00-175.00 Sr. Acoustician $160.00-175.00 Sr. Air Quality Specialist $160.00-175.00 Sr.Environmental Specialist $150.00-165.00 Noise/Air Quality Specialist $135.00 Environmental Specialist 1-III $85,00-150.00 Project Manager $105.00-140.00 € Archaeology Field Director $80.00 ! Staff Archaeologist $80.00 f Archaeology Field Crew $75,00 Sr.Archaeologist $125.00 Historian $70.00-125.00 i Environmental Planner 1-I11 $80.00-100.00 Environmental Analyst $65.00-75.00 i Sr.Scientist $120.00-175.00 E Biologist I-V $70.00-110.00 Assistant Biologist $50.00-60.00 Sr.Landscape Architect 1-III $150.00-180.00 Project Landscape Architect 1-111 $100.00-140,00 Assistant Landscape Designer $70.00-100.00 Sr.GIS Specialist $105.00-145.00 GIS Specialist 1-I11 $75.00-900.00 GIS Technician $50.00-60.00 Graphics $110.00 Document Coordinator $80.00 Technical Editor $70.00-90.00 Operations Manager $85.00 Word Processor 1-111 $65.00-80.00 I Clerical $60,00 Rates are subject to change on a yearly basis 2015-02-17 Agenda Packet Page 80 EXHIBIT" C HELIX Environmental Planning,Inc. 7578 El Cajon Boulevard Suite 200 La Mesa,CA 91942 HELIX 619.462.1515 tei 619.462.0552 fax Environmental Planning www.helixopi.com `7/ January 20, 2015 Mr. Roberto Yano City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Subject: Letter Agreement/Proposal to Provide Biological Consulting Services for the Bonita Canyon Environmental Mitigation and Restoration Project Dear Mr. Yano: HELIX Environmental Planning, Inc. (HELIX) is pleased to submit this letter agreement/ proposal (Agreement)to City of Chula Vista(Client)to provide biological consulting services for the Bonita Canyon Environmental Mitigation andRestoration Project. This proposal includes biological monitoring services for the implementation of the upland and wetland mitigation plans for the Bonita Canyon Emergency Repairs Project. SCOPE OF SERVICES Task 1 Biological Mitigation Installation Monitoring and 5-Year Monitorin . �k 1 a. Installation Monitoring. HELIX will monitor the installation of plant and seed material in the wetland and upland mitigation areas. Installation monitoring will include attendance at one pre-construction meeting,monitoring site grading and initial j weeding, as needed, inspection of construction fencing prior to the start of restoration activities, and part-time monitoring as needed during plant and seed installation. Following installation completion,the restoration specialist will assess and photograph the upland and wetland mitigation areas to document the baseline conditions. Following installation, a HELIX biologist will monitor maintenance activities conducted by the maintenance crews once a month for the upland and wetland mitigation areas during the initial 120-day establishment period. Following the end of this period, HELIX will prepare a letter for submittal to the appropriate regulatory agencies stating that the installation is complete and the 5-year maintenance and monitoring period has begun.Any changes to the upland or wetland mitigation, as compared to the respective mitigation plans, will be documented in the letter. Pre- and post-installation photographs also will be included in the letter. C:1 Usersl jamalnlAppDatalLocal\MicrosoftlWindows\Tcmporary Internet Piles lContent,Outlook12Q1UFDMI\P_RY 012015 Bonita Canyon Proposal.docx 2015-02-17 Agenda Packet Page 81 Letter Agreement to Mr. Roberto Yano Page 2 of 5 January 20, 2015 I b. Maintenance Monitoring. HELIX will continue to monitor the mitigation areas for a 5-year period after the 120-day establishment period. Monitoring visits will be conducted to the upland and wetland mitigation areas 8 times per year during Years 1 through 3; and in Years 4 and 5 monitoring will be conducted quarterly(4 visits per respective year). Monitoring memos noting issues with plant establishment, irrigation, sediment control, etc., will be provided,as necessary, to the maintenance personnel. The instaIlation/maintenance contractor(s)will complete maintenance requests from HELIX within 14 days of any written request or monitoring report. I 1c. Technical Monitoring. In addition to maintenance monitoring visits, HELIX will conduct annual technical monitoring of the upland and wetland mitigation areas each year during the 5-year maintenance and monitoring period. Technical monitoring will be scheduled for spring to coincide with the peak growing season for most native upland herbs and shrubs. The exact timing of the visits will depend on site and weather conditions. Due to the small size of the mitigation areas, annual monitoring will consist of a visual assessment all 5 years of the maintenance and monitoring period. Monitoring will include assessments of plant health, estimates of native and non-native cover, observations of plant recruitment, lists of wildlife and plant species observed on site, and photographic documentation. For the wetland creation area, a California Rapid Assessment Methodology(CRAM) analysis also will be conducted in Years 3 and 5 of the 5-year monitoring effort. Enhancement areas also will be assessed visually during each annual assessment. Y HELIX will prepare separate annual reports for the upland and wetland mitigation areas at the end of each year of the 5-year monitoring effort. The reports will include botanical observations noted above and a summary of whether the restoration effort is progressing and meeting the required success standards. The report also will recommend any remedial measures that may be required. In addition, for the wetland creation area,the results of the CRAM analysis will be incorporated into the wetland mitigation annual report for Years 3 and 5.After review by Client, HELIX will submit copies of the annual report to the appropriate regulatory agencies. f Id. Sign Off Coordination. HELIX will coordinate and attend 1 sign off visit with the U.S.Army Corps of Engineers for the wetland mitigation and with the USFWS and CDFW for the upland mitigation area. HELIX will assist the Client in obtaining final sign off letter from the respective agencies, HELIX has assumed 16 hours of Senior Scientist time and 16 hours of Project Manager time for this task. i le. Optional Contingency Tart- Under this task, HELIX will provide out of scope services that will be approved in advance by the Client, in writing. For example, if the mitigation site is not ready to be signed off at the end of five years, HELIX will provide an additional (out of scope) year of monitoring to ensure that the mitigation effort is successful. HELIX I 2015-02-17 Agenda Packet Environmental P 82 Letter Agreement to Mr. Roberto Yan Page 3 of 5 January 20, 2015 ASSUMPTIONS AND ADDITIONAL LIMITATIONS ON SCOPE OF SERVICES ® Client will provide HELIX with current digital baseline data for producing maps and graphics, which should be submitted in one of the following formats: .dxf, .dwg (Auto CAD), .dgn(Microstation), .e00 (Arclnfo export coverages), or .shp (ArcView shapefiles). ® Costs associated with meetings, focused species surveys,permit preparation and processing, California Environmental Quality Act processing, and/or technical studies and reports ("additional work") are not included within the scope of services required of HELIX under this Agreement. SCHEDULE HELIX will continue to work with Client in a timely and professional manner in accordance with the Terms and Conditions attached and incorporated herein by reference as Exhibit A. These Terms and Conditions are a material part of this Agreement. COST ESTIMATE AND PAYMENT PROCEDURES f HELIX is pleased to submit this cost estimate not to exceed $95,900,which is provided below in a breakdown by task. All work shall be invoiced on a time and materials basis pursuant to Exhibit B, Schedule of Fees. Payment terms are net 30 days pursuant to the Terms and Conditions referenced herein. Task Number Task Name Cost I a Installation Monitoring $19,300 lb Maintenance Monitoring 17,900 I c Technical Monitoring 43,200 Id Sign Off Coordination 5,500 le Optional Contingency Task 10,00 TOTAL $95,900 EXECUTION OF AGREEMENT This Agreement will become a contract upon HELIX's receipt of this original, including any Exhibits, signed by an authorized representative of Client. f HELIX 2015-02-17 Agenda Packet Env(rommenMipffl*g 83 Letter Agreement to Mr. Roberto Yano Page 4 of 5 January 20, 2015 We look forward to working with you on this project. If you have any questions concerning this Agreement,please call Sally Trnka or me at(619) 462-1515. Sincerely, Tom Huffman Biological Services Division Manager Enclosures: Exhibit A, Terms and Conditions Exhibit B, Schedule of Fees HELIX i Y i i i i I 2015-02-17 Agenda Packet En*onmanlaiPAm&84 DEPARTMENT OF THE ARMY LOS ANGELES DISTRICT, U.S.ARMY CORPS OF ENGINEERS 6900 LA PLACE COURT,SUITE 100 CARLSBAD,CA 92008 July 22, 2014 Robert Yano, PE Senior Civil Engineer City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 Dear Mr. Yano: Thank you for your letter dated June 24, 2014, regarding the Bonita Canyon Project (SPL- 2012-003 18-PJB) that was approved on December 31, 2012 under a Department of Army Regional General Permit,Repair and Protection Activities in Emergency Situations (Regional General Permit No. 63). Your letter requested approval of the "Bonita Canyon Repairs Project, Wetland Habitat Mitigation and Monitoring Plan" (dated June 9, 2014; HMMP). Based on a review of your response to comments, a review of the HMMP and pursuant to the Compensatory Mitigation for Losses of Aquatic Resources; Final Rule (33 CFR Parts 325 and 332; Final Rule), the HMMP is approved. Thank you for participating in the regulatory program. If you have any questions, contact Peggy Bartels at 760-602-4832 or via e-mail at Peggy.J.Bartels(a usace.army.mil. Please help to evaluate and improve the regulatory experience for others by completing the customer survey form at http://corpsnapu.usace.aiiny.mil/ein apex/Y?p rel ulatory survey. Sincerely, C�_ U k-CA Therese O. Bradford Chief, South Coast Branch 2015-02-17 Agenda Packet Page 85 RESOLUTION NO. 2015- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2014-15 CIP BUDGET AND ESTABLISHING A NEW CAPITAL IMPROVEMENT PROJECT "BONITA CANYON ENVIRONMENTAL RESTORATION AND MITIGATION PROJECT (DR200)"; REDUCING THE DR189 CIP BUDGET (GENERAL FUND) BY $377,900 AND APPROPRIATING THE EQUIVALENT AMOUNT TO DR200; ACCEPTING BIDS, AWARDING A CONTRACT IN THE AMOUNT OF $244,602.10 TO NATURES IMAGE, INC. FOR BONITA CANYON ENVIRONMENTAL RESTORATION AND MITIGATION PROJECT (DR200); WAIVING CITY COUNCIL POLICY 574-01, AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AN AMOUNT NOT TO EXCEED $37,397.90 (4/5 VOTE REQUIRED) WHEREAS, on August 17, 2010, in accordance with Resolution No. 2010-212, the City Council established a new Capital Improvement Project for Bonita Canyon Repairs,project(DR- 189); and WHEREAS, on November 9, 2010, in accordance with Resolution 2010-263, the City Council approved an agreement between the City of Chula Vista and the Rick Engineering Company and Helix Environmental Planning ("RH Team") for professional services for preparing plans and specifications for the Bonita Canyon Repair Project; and WHEREAS, on March 13, 2012, in accordance with Resolution 2012-041, the City Council appropriated $504,000 from the General Fund Reserve for Fiscal Year 2012, to the existing Capital Improvement Project DR189, for the construction of the Bonita Canyon repairs, environmental permitting fees, and for certain additional consultant services in accordance with Article I of the Agreement with RH Team; and WHEREAS, on March 13, 2012, in accordance with Resolution 2012-041, the City Council appropriated an additional $514,000 to DR189 for Bonita Canyon environmental mitigation in the FY2012-13 Capital Improvement Budget; and WHEREAS, while processing plans for repairing the gabion structure with the Resource Agencies, Staff applied for an emergency Regional General Permit No. 63 permit (RGP63) from the Army Corps of Engineers due the vulnerability of the condition of the gabion structure and the threats of major storms; and 2015-02-17 Agenda Packet Page 86 Resolution No. Page 2 WHEREAS, on December 31, 2012, the Army Corps of Engineers (ACOE) granted the City a RGP63 permit to reinforce the gabion structure; and WHEREAS, on January 4, 2013, upon obtaining City Manager's approval and upon soliciting three informal bids from contractors, staff retained Cass Construction, Inc. to perform Bonita Canyon Emergency Repair in accordance with provisions in Section 1009 of the City Charter; and WHEREAS, on March 27, 2013, Cass Construction, Inc. completed the emergency repair work, and as a result of completing the emergency work, the potential threat of injury and property damage was averted; and WHEREAS, on July 22, 2014, the ACOE issued an approval letter for the Habitat Mitigation and Monitoring Plan (HMMP), where that HMMP approval allowed RH Team to complete the design and the bid package for the remaining environmental restoration and mitigation project; and WHEREAS, in accordance with provisions in Section 1009 of the City Charter, on December 30, 2014, Chula Vista staff advertised and solicited bids from contractors for Bonita Canyon Environmental Restoration and Mitigation project that implements the wetland and upland environmental mitigation, said contract also includes a 5-year maintenance period as required by the approved HMMP; and WHEREAS, the lowest bid for said contract was submitted by Natures Image, Inc. (Contractor License No. 720513) in the amount of$244,602.10; and WHEREAS, Staff believes that this bid is very reasonable in comparison to RH Team's projected estimate of $265,000, and due to unpredictable and poor field conditions, limited access points, and possible inclement weather, staff included a$37,397.90 contingency (15.29%) for the construction; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it amends the Fiscal Year 2014-15 CIP Budget and establishes a new Capital Improvement Project "Bonita Canyon Environmental Restoration and Mitigation (DR200)"; reduces the DR189 CIP Budget (General Fund) by $377,900 and appropriates the equivalent amount to DR200; accepts the bid for"Bonita Canyon Environmental Restoration and Mitigation Project"; awards the contract for an amount of $244,602.10 to Natures Image in the form presented,with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City; authorizes and directs the City Manager or his designee to execute same; waives City Council Policy 574-01; and authorizes the expenditure of all available contingency funds in the amount not to exceed$37,397.90. Presented by Approved as to form by 2015-02-17 Agenda Packet Page 87 Resolution No. Page 3 Richard A. Hopkins Glen R. Googins Director of Public Works City Attorney 2015-02-17 Agenda Packet Page 88 RESOLUTION NO. 2015 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A SOLE SOURCE AGREEMENT WITH HELIX ENVIRONMENTAL PLANNING, INC. FOR THE PROVISION OF BIOLOGICAL MONITORING SERVICES DURING THE CONSTRUCTION AND SUBSEQUENT 5-YEAR MAINTENANCE PERIOD FOR BONITA CANYON ENVIRONMENTAL RESTORATION AND MITIGATION PROJECT WHEREAS, on August 17, 2010, in accordance with Resolution No. 2010-212, the City Council established a new Capital Improvement Project for Bonita Canyon Repairs,project(DR- 189); and WHEREAS, on November 9, 2010, in accordance with Resolution 2010-263, the City Council approved an agreement between the City of Chula Vista and the Rick Engineering Company and Helix Environmental Planning ("RH Team") for professional services for preparing plans and specifications for the Bonita Canyon Repair Project; and WHEREAS, on March 13, 2012, in accordance with Resolution 2012-041, the City Council appropriated $504,000 from the General Fund Reserve for Fiscal Year 2012, to the existing Capital Improvement Project DR189, for the construction of the Bonita Canyon repairs, environmental permitting fees, and for certain additional consultant services in accordance with Article I of the Agreement with RH Team; and WHEREAS, on March 13, 2012, in accordance with Resolution 2012-041, the City Council appropriated an additional $514,000 to DR189 for Bonita Canyon environmental mitigation in the FY2012-13 Capital Improvement Budget; and WHEREAS, while processing plans for repairing the gabion structure with the Resource Agencies, Staff applied for an emergency Regional General Permit No. 63 permit (RGP63) from the Army Corps of Engineers due the vulnerability of the condition of the gabion structure and the threats of major storms; and WHEREAS, on December 31, 2012, the Army Corps of Engineers (ACOE) granted the City a RGP63 permit to reinforce the gabion structure; and WHEREAS, on January 4, 2013, upon obtaining City Manager's approval and upon soliciting three informal bids from contractors, staff retained Cass Construction, Inc. to perform Bonita Canyon Emergency Repair in accordance with provisions in Section 1009 of the City Charter; and 2015-02-17 Agenda Packet Page 89 Resolution No. Page 2 WHEREAS, on March 27, 2013, Cass Construction, Inc. completed the emergency repair work, and as a result of completing the emergency work, the potential threat of injury and property damage was averted; and WHEREAS, on July 22, 2014, the ACOE issued an approval letter for the Habitat Mitigation and Monitoring Plan (HMMP), where that HMMP approval allowed RH Team to complete the design and the bid package for the remaining environmental restoration and mitigation project; and WHEREAS, in accordance with provisions in Section 1009 of the City Charter, on December 30, 2014, Chula Vista staff advertised and solicited bids from contractors for Bonita Canyon Environmental Restoration and Mitigation project that implements the wetland and upland environmental mitigation, said contract also includes a 5-year maintenance period as required by the approved HMMP; and WHEREAS, the lowest bid for said contract was submitted by Natures Image, Inc. (Contractor License No. 720513) in the amount of$244,602.10; and WHEREAS, in addition, the HMMP requires that the City retain a second party to provide biological monitoring during the installation of the restoration and mitigation as well as the 5-year maintenance period after installation; and WHEREAS, since Helix Environmental Planning (Helix) is very familiar with all aspect of this project, is already under contract with the City for finalizing the HMMP, and has established a working relationship with the ACOE, staff recommends that City Council waive the standard competitive selection process as impractical and in the City's best interest, and on sole source basis retain Helix to provide the biological monitoring services; and WHEREAS, staff and Helix negotiated the contract amount for such services and arrived at a total contract price of$95,900; and WHEREAS, staff believes Helix's requested amount is fair and reasonable and therefore recommends retaining Helix for such work; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula Vista that it waives the competitive selection process pursuant to Chula Vista Municipal Code section 2.56.070(B)(3); accepts Helix "Letter Agreement/proposal to provide Biological Consulting Services for Bonita Canyon Environmental Restoration and Mitigation Project"; approves an agreement, in the form presented,with such minor modifications as may be required or approved by the City Attorney, with Helix in the amount of$95,900, including contingency, for the provision of biological monitoring for Bonita Canyon Environmental Restoration and Mitigation project(DR200); and authorizes and directs the Mayor to execute same. Presented by Approved as to form by 2015-02-17 Agenda Packet Page 90 Resolution No. Page 3 Richard A. Hopkins Glen R. Googins Director of Public Works City Attorney 2015-02-17 Agenda Packet Page 91 City of Chula Vista CTY CHUILAVISTA Staff Report File#: 15-0004, Item#: 5. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $144,954 FROM THE U.S. DEPARTMENT OF HOMELAND SECURITY AND APPROPRIATING SAID FUNDS TO THE POLICE GRANT FUND FOR OPERATION STONEGARDEN (4/5 VOTE REQUIRED) RECOMMENDED ACTION Council adopt the resolution. SUMMARY Since the events of September 11 , 2001 , the interception of terrorists and their weapons attempting entry across the nation's borders has become the priority mission of the U.S. Department of Homeland Security. Grant funding via "Operation Stonegarden" has been awarded to the San Diego County region to facilitate regional partnerships and enhance border enforcement capabilities. In coordination with the U.S. Customs and Border Protection (CBP) and grant administration by the County of San Diego, the Police Department has been allocated $144,954 for Operation Stonegarden 2014 funding. ENVIRONMENTAL REVIEW This proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is necessary. BOARD/COMMISSION RECOMMENDATION Not Applicable. DISCUSSION The mission of Operation Stonegarden is to raise border security by increasing law enforcement presence along the border, intelligence/information sharing and communication. Participating agencies in this regional effort include the U.S. Customs and Border Protection (CBP), Immigration and Customs Enforcement (ICE), San Diego County Sheriff's Department, California Department of Motor Vehicles, California Highway Patrol, California Fish and Game, San Diego County Probation Department and San Diego Harbor Police. The Chula Vista Police Department is in the unique position of being geographically located in close proximity to the border (5 miles) with three main north/south arteries traversing the city. As a result, multiple local and federal agencies frequently ask the Department for assistance and interdiction of both north and south bound traffic involved in border-related crimes. The Police Department will continue to participate in regional efforts of border enforcement on an overtime basis. The Department was funded over $3.9 million in prior Stonegarden awards, and the 2014 funding of City of Chula Vista Page 1 of 2 Printed on 2/12/2015 powered by Leg 2015-02-17 Agenda Packet Page 92 File#: 15-0004, Item#: 5. $144,954 will continue those regional efforts. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500-foot rule found in California Code of Regulations section 18704.2 (a)(1) is not applicable to this decision. Staff is not independently aware, nor has staff been informed by any City Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. Funds received for Operation Stonegarden supports the goal of Strong and Secure Neighborhoods by providing additional law enforcement presence in the community. CURRENT YEAR FISCAL IMPACT Approval of this resolution will result in a one-time appropriation of $144,954 to personnel services of the Police Grant Fund. The funding from the U.S. Department of Homeland Security will completely offset these costs, resulting in no net fiscal impact to the General Fund. ONGOING FISCAL IMPACT There is no ongoing fiscal impact. ATTACHMENTS None. Staff Contact: Jonathan Alegre City of Chula Vista Page 2 of 2 Printed on 2/12/2015 powered by Leg 2015-02-17 Agenda Packet Page 93 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $144,954 FROM THE U.S. DEPARTMENT OF HOMELAND SECURITY AND APPROPRIATING SAID FUNDS TO THE POLICE GRANT FUND FOR OPERATION STONEGARDEN WHEREAS, since the events of September 11, 2001, the interception of terrorists and their weapons attempting entry across the nation's borders has become the priority mission of the U.S. Department of Homeland Security; and WHEREAS, grant funding via "Operation Stonegarden" has been awarded by the U.S. Department of Homeland Security to the San Diego County region to facilitate regional partnerships and enhance border enforcement capabilities; and WHEREAS, the Police Department has been allocated $144,954 for Operation Stonegarden to participate in regional enforcement efforts and support the mission of the operation; and WHEREAS, the grant funds provided by the U.S Department of Homeland Security will completely offset the total costs of Operation Stonegarden. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby accept $144,954 from the U.S. Department of Homeland Security and appropriate $144,954 to personnel services of the Police Grant Fund for Operation Stonegarden. Presented by: Approved as to form by: David Bejarano Glen R. Googins Police Chief City Attorney 2015-02-17 Agenda Packet Page 94 City of Chula Vista CTY CHUILAVISTA Staff Report File#: 14-0632, Item#: 6. A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING AN INTERFUND LOAN POLICY B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AFFIRMING AND CONSOLIDATING EXISTING INTERFUND LOANS FROM THE TRUNK SEWER CAPITAL RESERVE FUND TO THE SALT CREEK TRUNK SEWER DEVELOPMENT IMPACT FEE FUND WITH A PRINCIPAL AMOUNT OF $20,667,477 AND APPROVING A CONSOLIDATED INTERFUND LOAN REPAYMENT SCHEDULE REFLECTING FINANCING COSTS AND REPAYMENTS TO DATE C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AFFIRMING AND CONSOLIDATING EXISTING INTERFUND LOANS FROM THE TRUNK SEWER CAPITAL RESERVE FUND TO THE STORM DRAIN REVENUE FUND WITH A PRINCIPAL AMOUNT OF $576,023 AND APPROVING A CONSOLIDATED INTERFUND LOAN REPAYMENT SCHEDULE REFLECTING FINANCING COSTS AND REPAYMENTS TO DATE D. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AFFIRMING AND CONSOLIDATING EXISTING INTERFUND LOANS FROM THE SEWER FACILITIES REPLACEMENT FUND TO THE STORM DRAIN REVENUE FUND WITH A PRINCIPAL AMOUNT OF $640,000 AND APPROVING A CONSOLIDATED INTERFUND LOAN REPAYMENT SCHEDULE REFLECTING FINANCING COSTS AND REPAYMENTS TO DATE E. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AFFIRMING THE EXISTING INTERFUND LOAN FROM THE GENERAL FUND TO THE CIVIC CENTER COMPONENT OF THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE FUND WITH A PRINCIPAL AMOUNT OF $1 ,528,969 AND APPROVING AN INTERFUND LOAN REPAYMENT SCHEDULE REFLECTING FINANCING COSTS AND REPAYMENTS TO DATE F. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AFFIRMING AND CONSOLIDATING THE EXISTING INTERFUND LOANS FROM THE TRANSPORTATION DEVELOPMENT IMPACT FEE FUND TO THE FIRE SUPPRESSION SYSTEM EXPANSION COMPONENT OF THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE FUND WITH A City of Chula Vista Page 1 of 6 Printed on 2/12/2015 powered by Leg 2015-02-17 Agenda Packet Page 95 File#: 14-0632, Item#: 6. PRINCIPAL AMOUNT OF $10.5 MILLION AND APPROVING A CONSOLIDATED INTERFUND LOAN REPAYMENT SCHEDULE REFLECTING FINANCING COSTS AND REPAYMENTS TO DATE G. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AFFIRMING AND CONSOLIDATING THE EXISTING INTERFUND LOANS FROM THE EASTERN PARKLAND ACQUISITION AND DEVELOPMENT FEE FUND TO THE WESTERN PARKLAND ACQUISITION AND DEVELOPMENT FEE FUND WITH A PRINCIPAL AMOUNT OF $9.94 MILLION AND APPROVING A CONSOLIDATED INTERFUND LOAN REPAYMENT SCHEDULE REFLECTING FINANCING COSTS AND REPAYMENTS TO DATE H. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING VARIOUS AMENDMENTS TO THE FISCAL YEAR 2014-15 BUDGET TO REFLECT INTERFUND LOAN REPAYMENTS AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) RECOMMENDED ACTION Council adopt the resolutions. SUMMARY In 2012 the City Council endorsed the City's Fiscal Recovery and Progress Plan report. Included in the report was a goal to review and update the City's Fiscal Policies. Adoption of the proposed resolution establishes a formal City Council approved interfund loan policy, which is a recommended best practice by the Government Finance Officers Association (GFOA). Confirmation of existing interfund loans and adoption of consolidated and revised repayment schedules bringing outstanding interfund loans into compliance with the proposed policy is also recommended. No new interfund loans are created by this action. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the proposed action is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the actions proposed are not subject to CEQA. BOARD/COMMISSION RECOMMENDATION Not Applicable. DISCUSSION The proposed resolutions establish an interfund loan policy, confirming and consolidating existing interfund loans and bringing the loans into compliance with the proposed policy. No new interfund loans are created by this action. Interfund Loan Policy As the City continues its efforts toward a sustainable budget that minimizes impacts to City services during economic downturns, it is appropriate that an interfund loan policy be established to provide City of Chula Vista Page 2 of 6 Printed on 2/12/2015 powered by Leg 2015-02-17 Agenda Packet Page 96 File#: 14-0632, Item#: 6. guidance on the issuance and management of interfund loans. The Government Finance Officers Association (GFOA) recommends that state and local governments adopt a written interfund loan policy to provide transparency and ensure that there is a common understanding among elected officials and staff regarding the City's approach to interfund loans. Establishing a carefully considered policy improves the quality of decisions, articulates policy goals, provides guidelines for the structure of interfund borrowings, and demonstrates a commitment to long -term capital and financial planning. The proposed policy is provided as Attachment 1. The main objectives of the City's interfund loan policy are: 1. To establish a standard process for calculating financing costs for interfund loans; and 2. To establish standard documentation to be presented to the City Council, when considering approval of new interfund loans. Approval of this resolution will establish a City Council adopted interfund loan policy, a recommended GFOA best practice. The approved policy will be reviewed periodically, and updated to include any necessary adjustments. Updated Interfund Loan Repayment Schedules Finance Department staff has reviewed existing interfund loans and recalculated the finance charges applicable through June 30, 2014, accounting for repayments and applying the City's actual historic pooled interest rate. The current review excludes activities of the Successor Agency to the Redevelopment Agency and the Housing Authority. A summary of interfund loans, repayments, and financing costs through June 30, 2014 is provided in Table 1, below. Additional detail for each loan is provided in Attachment 2. Table 1 - Interfund Activity through Fiscal Year 2013/14 Original Payments interest Charges Balance FY15 Payment Additional Total Loan Date Principal to Date' to Date' 1 Budgeted Appropriation From Trunk Sewer Capital Reserve(Fund 413)to Salt Creek Trunk Sewer DIF(Fund 433; 07/01/1997 674,180 433,835 1,108,015 12/29/2000 7,585,500 (2,500,083) 2,576,468 7,661,885 12/04/2001 1,300,000 371,933 1,671,933 08/13/2002 2,524,596 658,227 3,182,823 06/30/2004 1,000,000 218,730 1,218,730 08/17/2004 6,115,322 1,321,312 7,436,634 08/17/2004 1,467,879 317,158 1,785,037 20,667,477 (2,500,083) 5,897,663 24,065,057 250,000 3,250,000 3,500,000 From Trunk Sewer Capital Reserve(Fund 413)to Storm Drain Revenue(Fund 301) 06/09/1998 350,000 (500,000) 191,895 41,895 07/16/1998 34,500 18,949 53,449 11/24/1999 141,000 62,226 203,226 01/18/2000 50,523 21,688 72,211 576,023 (500,000) 294,759 370,782 370,782 - 370,782 City of Chula Vista Page 3 of 6 Printed on 2/12/2015 2015-02-17 Agenda Packet Page 97 File#: 14-0632, Item#: 6. Original Payments Interest Charges Balance FY15 Payment Additional Total Loan Date Principal to Date' to Date' 1 Budgeted Appropriation From Sewer Facilities Replacement(Fund 428)to Storm Drain Revenue(Fund 301) 12/29/2000 300,000 (105,825) 90,686 284,861 12/04/2001 340,000 (82,445) 84,076 341,631 640,000 (188,270) 174,762 626,492 300,519 - 300,519 From General Fund(Fund 100)to Public Facilities Development Impact Fee(PFDIF)Civic Center(Fund 572) 10/24/2008 1,528,969 (94,302) 51,345 1,486,012 - 1,528,969 (94,302) 51,345 1,486,012 - - - From Transportation Development Impact Fee(TDIF)(Fund 591)to PFDIF Fire Suppression(Fund 576)2 01/02/2009 5,200,000 153,142 5,353,142 709,896 01/01/2010 5,300,000 (430,928) 89,873 4,958,945 430,928 10,500,000 (430,928) 243,015 10,312,087 1,140,824 - - From TDIF(Fund 591)to Western TDIF(Fund 593) 12/06/2011 180,000 (189,745) 3,301 (6,444) - (6,444) (6,444) 180,000 (189,745) 3,301 (6,444) - (6,444) (6,444) From Eastern Parkland Acquisition&Development(PAD)(Fund 715)to Western PAD(Fund 716) 07/01/2010 9,630,000 136,287 9,766,287 12/06/2011 310,000 2,340 312,340 9,940,000 - 138,627 10,078,627 - - - Total 44,032,469 (3,903,328) 6,803,471 46,932,612 2,062,125 3,243,556 4,164,857 'Payments to date, interest charges to date, and balance due are as of the end of fiscal year 2013-14, June 30, 2014. 2The fiscal year 2014-15 budget includes an appropriation of$709,896 from the Administration component of the PFDIF (Fund 571). Resolution H corrects this appropriation to reflect repayment from the Fire Suppression Component(Fund 576). No net increase in the PFDIF appropriation is recommended. Existing interfund loans have been created via a combination of standalone interfund loan resolutions, annual budget resolutions, and direct project expenditures. Previous direct project expenditures as interfund loans are limited to expenses by the Trunk Sewer Capital Reserve on behalf of the Salt Creek Trunk Sewer Development Impact Fee (DIF). During construction of the Salt Creek trunk sewer line, the Salt Creek Trunk Sewer DIF facility list was amended to include facility segments previously constructed via Trunk Sewer Capital Reserve funds. Subsequent Salt Creek Trunk Sewer DIF reports have acknowledged and documented the obligation of the Salt Creek Trunk Sewer DIF to repay the Trunk Sewer Capital Reserve fund for these direct project expenditures. Pursuant to the proposed interfund loan policy, all future interfund borrowings will be by approved standalone resolution, not via budget resolution or direct project expense. Updated and consolidated repayment schedules have been prepared applying the most recent pooled interest rate calculation and are included as Attachment 3. A summary of the consolidated repayment schedules is provided in Table 2, below. Actual future interest charges will vary based upon actual investment returns and the availability of funds to repay the debt. City of Chula Vista Page 4 of 6 Printed on 2/12/2015 2015-02-17 Agenda Packet Page 98 File#: 14-0632, Item#: 6. Table 2 - Summary of Interfund Loan Consolidated Repayment Schedules Amount Payment Additional Total FY15 Remaining Repayment Future From • To Fund Now Due Budgeted Appropriation Payments Obligation Trunk Sewer Salt Creek DIF 24,065,057 250,000 3,250,000 3,500,000 20,565,057 20 505,411 Trunk Sewer Storm Drain 370,782 370,782 - 370,782 - <1 408 Sewer Fac Rep Storm Drain 626,492 300,519 300,519 325,973 3 2,358 General Fund PFDIF Civic Ctr 1,486,012 - - 1,486,012 5 9,804 TDIF PFDIF Fire 10,312,087 1,140,824 - 10,312,087 10 123,147 TDIF Western TDIF (6,444) - (6,444) (6,444) - Eastern PAD Western PAD 10,078,627 - - - 10,078,627 20 234,713 Total 46,932,612 2,062,125 3,243,556 4,164,857 42,767,755 875,841 Future interest calculations are based upon most recent actual pooled investment earning rates. Actual rates will vary based on investment returns. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that each of the decisions contemplated by this action is either: (i) not site specific; or (ii) is an implementation decision which will merely carry out a decision already made and will not independently create a conflict of interest. Consequently, this item does not present a conflict under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The adoption of a formal City interfund loan policy supports the Operational Excellence and Economic Vitality goals, as it is a critical element in strong financial management practices. CURRENT YEAR FISCAL IMPACT No new interfund loans are created by this action. Approval of Resolution A adopts an interfund loan policy and has no net fiscal impact. Adoption of Resolutions B through G confirm previous interfund loans and adopt updated and consolidated interfund loan repayment schedules to ensure that interfund loans financing costs are fairly applied using the City's actual pooled investment earning rate. Approval of Resolution H appropriates $3.25 million from the available balance of the Salt Creek Trunk Sewer DIF fund to repay existing interfund loans from the Trunk Sewer Capital Reserve fund. Resolution H also appropriates $6,444 from the available balance of the Transportation Development Impact Fee (TDIF) fund to repay the Western TDIF fund for excess prior year interest charges. Lastly, Resolution H takes two actions recommended to improve accounting of the $5.2 million interfund loan from the TDIF to the PFDIF program. Pursuant to § 3.50.110(B) of the Chula Vista City of Chula Vista Page 5 of 6 Printed on 2/12/2015 2015-02-17 Agenda Packet Page 99 File#: 14-0632, Item#: 6. Municipal Code, the PFDIF is considered a single fund for financial reporting purposes. However, for fee calculation and administration purposes, each component of the program is budgeted and accounted for in a separate sub-fund. The $5.2 million loan, authorized by the City Council via Resolution No. 2008-300, did not identify the individual PFDIF component borrowing the funds. The loan was recorded against the Administration component of the PFDIF, but is more appropriately recorded against the Fire Suppression System Expansion component, as the Fire Suppression component required additional funding to mitigate a negative fund balance. Approval of Resolution H transfers $140,388 from the Administration component of the PFDIF to the Fire Suppression component to reflect interest earnings on the $5.2 million through June 30, 2014. Approval of Resolution H further amends the fiscal year 2014-15 budget to reflect a current year loan repayment in the amount of$709,896 by the Fire Suppression component. This action replaces and eliminates a payment in the same amount previously appropriated from the Administration component. ONGOING FISCAL IMPACT No new interfund loans are created by this action. Approval of Resolution A adopts an interfund loan policy and has no net fiscal impact. The fiscal impact of future interfund loans will be disclosed to the City Council at the time of consideration, consistent with the provisions of the proposed interfund loan policy. The policy supports increased transparency in approving interfund loans, while seeking to minimize capital project financing costs. Adoption of Resolutions B through G confirm previous interfund loans and adopt updated and consolidated interfund loan repayment schedules to ensure that interfund loans financing costs are fairly applied using the City's actual pooled investment earning rate. Approval of Resolution H amends the fiscal year 2014-15 budget and has no ongoing fiscal impact. ATTACHMENTS 1. Interfund Loan Policy 2. Interfund Loan Schedules: Activity through Fiscal Year 2013-14 3. Consolidated Interfund Loan Schedules: Fiscal Year 2014-15 Forward Staff Contact: Tiffany Allen, Treasury and Business Manager City of Chula Vista Page 6 of 6 Printed on 2/12/2015 2015-02-17 Agenda Packet Page 100 ATTACHMENT 1 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Interfund Loan Policy POLICY EFFECTIVE NUMBER DATE PAGE IofI ADOPTED BY: Resolution No. DATED: December 16,2014 AMENDED BY: BACKGROUND In order to achieve important public policy goals, and in accordance with generally accepted accounting principles (GAAP) and applicable legal requirements, the City has established various special revenue, capital project, debt service, and enterprise funds to account for revenues whose use should be restricted to certain activities. Accordingly, each fund exists as a separate financing entity from other funds,with its own revenue sources, expenditures, and fund equity. On occasion, cash flow constraints in a particular fund may necessitate interim financing of capital projects. Interfund borrowings are an appropriate capital project financing alternative to incurring external debt, provided that the fiduciary purpose of the loaning fund is not negatively impacted. Interfund borrowings should be limited to one-time capital expenditures and are not an appropriate funding source for ongoing operations and maintenance activities. PURPOSE To establish an interfund loan policy, including the standard terms and documentation required for interfund borrowings. POLICY All interfund loans require approval of the City Council. At the time of City Council consideration, the following information shall be provided, at minimum: 1. The purpose of the loan 2. The principal amount borrowed 3. The expected repayment term 4. The most recent monthly pooled investment earning rate 5. The estimated total financing cost 6. A proposed repayment plan, reflecting the above factors 7. The existing interfund loan and external debt obligations of the borrowing fund 8. The existing balance of Interfund loan advances from the loaning fund No fund should profit nor be penalized for internal borrowings. As such, all financing costs shall be calculated using the City's actual pooled investment earning rate, as determined by the Finance Director/Treasurer. Following Council approval, throughout the life of the loan, the actual financing cost shall be calculated based upon the City's actual pooled investment earning rate on a quarterly basis. 2015-02-17 Agenda Packet Page 101 ATTACHMENT 1 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Interfund Loan Policy POLICY EFFECTIVE NUMBER DATE PAGE 2of1 ADOPTED BY: Resolution No. DATED: December 16,2014 AMENDED BY: In order to limit impacts to loaning funds, the shortest reasonable repayment term is preferred. The repayment of interfund loans shall, therefore,be considered priority expenses for debtor funds during the annual budget process. 2015-02-17 Agenda Packet Page 102 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULES Activity through Fiscal Year 2013-14 CI[Y OF CHUIA VISTA 2015-02-17 Agenda Packet Page 103 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULE Activity through Fiscal Year 2013-14 � CITY OF Loan from Fund: Trunk Sewer Capital Reserve(Fund 413) CHULA VISTA Loan to Fund: Salt Creek Trunk Sewer DIF(Fund 433) Description of Interfund Loan: SW210:Salt Creek Trunk Reaches 4b&5a Loan Date: 07/01/1997 Principal Amount: $ 674,180 Payments to Date: $ - Interest Charges to Date: $ 433,835 Balance Due as of June 30,2014: $ 1,108,015 Fiscal Year Principal Payments Interest Charges Year End Balance Average Rate* FY1998 $ 674,180 $ $ 39,359 $ 713,539 5.69% FY1999 $ - $ $ 39,080 $ 752,619 5.34% FY2000 $ $ $ 43,909 $ 796,528 5.67% FY2001 $ $ $ 50,133 $ 846,661 6.12% FY2002 $ $ $ 29,494 $ 876,155 3.43% FY2003 $ $ $ 19,244 $ 895,399 2.17% FY2004 $ $ $ 13,792 $ 909,191 1.53% FY2005 $ $ $ 20,413 $ 929,604 2.23% FY2006 $ $ $ 36,327 $ 965,931 3.84% FY2007 $ $ $ 50,525 $ 1,016,456 5.11% FY2008 $ $ $ 45,512 $ 1,061,968 4.37% FY2009 $ $ $ 23,446 $ 1,085,413 2.18% FY2010 $ $ $ 7,139 $ 1,092,552 0.66% FY2011 $ $ $ 5,356 $ 1,097,908 0.49% FY2012 $ $ $ 4,136 $ 1,102,044 0.38% FY2013 $ $ $ 3,286 $ 1,105,330 0.30% FY2014 $ $ $ 2,685 $ 1,108,015 0.24% Activity to Date $ 674,180 $ $ 433,835 $ 1,108,015 3.79% *Average rate reflects pooled investment earning rate applied on a quarterly basis,averaged by fiscal year. Activity to date value reflects average annual rate over life of loan through fiscal year 2013-14. 2015-02-17 Agenda Packet Page 104 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULE Activity through Fiscal Year 2013-14 � CITY OF Loan from Fund: Trunk Sewer Capital Reserve(Fund 413) CHULA VISTA Loan to Fund: Salt Creek Trunk Sewer DIF(Fund 433) Description of Interfund Loan: FY 2000-01 Budget Loan Date: 12/29/2000 Principal Amount: $ 7,585,500 Payments to Date: $ (2,500,083) Interest Charges to Date: $ 2,576,468 Year End Balance as of June 30,2014: $ 7,661,885 Fiscal Year Principal Payments Interest Charges Year End Balance Average Rate* FY2001 $ 7,585,500 $ $ 222,581 $ 7,808,081 6.12% FY2002 $ - $ $ 272,003 $ 8,080,084 3.43% FY2003 $ $ $ 177,472 $ 8,257,556 2.17% FY2004 $ $ $ 127,193 $ 8,384,750 1.53% FY2005 $ $ $ 188,249 $ 8,572,999 2.23% FY2006 $ $ $ 335,014 $ 8,908,013 3.84% FY2007 $ $ $ 465,951 $ 9,373,964 5.11% FY2008 $ $ (1,000,083) $ 419,720 $ 8,793,600 4.37% FY2009 $ $ (250,000) $ 194,141 $ 8,737,741 2.18% FY2010 $ $ (250,000) $ 57,472 $ 8,545,214 0.66% FY2011 $ $ (250,000) $ 41,888 $ 8,337,102 0.49% FY2012 $ $ (250,000) $ 31,406 $ 8,118,508 0.38% FY2013 $ $ (250,000) $ 24,206 $ 7,892,714 0.30% FY2014 $ $ (250,000) $ 19,171 $ 7,661,885 0.24% Activity to Date $ 7,585,500 $ (2,500,083) $ 2,576,468 $ 7,661,885 2.43% *Average rate reflects pooled investment earning rate applied on a quarterly basis,averaged by fiscal year. Activity to date value reflects average annual rate over life of loan through fiscal year 2013-14. 2015-02-17 Agenda Packet Page 105 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULE Activity through Fiscal Year 2013-14 � CITY OF Loan from Fund: Trunk Sewer Capital Reserve(Fund 413) CHULA VISTA Loan to Fund: Salt Creek Trunk Sewer DIF(Fund 433) Description of Interfund Loan: FY 2001-02 Budget Loan Date: 12/04/2001 Principal Amount: $ 1,300,000 Payments to Date: $ - Interest Charges to Date: $ 371,933 Year End Balance as of June 30,2014: $ 1,671,933 Fiscal Year Principal Payments Interest Charges Year End Balance Average Rate* FY2002 $ 1,300,000 $ $ 22,070 $ 1,322,070 3.43% FY2003 $ - $ $ 29,038 $ 1,351,109 2.17% FY2004 $ $ $ 20,811 $ 1,371,920 1.53% FY2005 $ $ $ 30,801 $ 1,402,721 2.23% FY2006 $ $ $ 54,815 $ 1,457,537 3.84% FY2007 $ $ $ 76,239 $ 1,533,776 5.11% FY2008 $ $ $ 68,675 $ 1,602,451 4.37% FY2009 $ $ $ 35,378 $ 1,637,829 2.18% FY2010 $ $ $ 10,773 $ 1,648,602 0.66% FY2011 $ $ $ 8,081 $ 1,656,683 0.49% FY2012 $ $ $ 6,241 $ 1,662,924 0.38% FY2013 $ $ $ 4,958 $ 1,667,882 0.30% FY2014 $ $ $ 4,051 $ 1,671,933 0.24% Activity to Date $ 1,300,000 $ $ 371,933 $ 1,671,933 2.20% *Average rate reflects pooled investment earning rate applied on a quarterly basis,averaged by fiscal year. Activity to date value reflects average annual rate over life of loan through fiscal year 2013-14. 2015-02-17 Agenda Packet Page 106 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULE Activity through Fiscal Year 2013-14 � CITY OF Loan from Fund: Trunk Sewer Capital Reserve(Fund 413) CHULA VISTA Loan to Fund: Salt Creek Trunk Sewer DIF(Fund 433) Description of Interfund Loan: Resolution 2002-297 Loan Date: 08/13/2002 Principal Amount: $ 2,524,596 Payments to Date: $ - Interest Charges to Date: $ 658,227 Year End Balance as of June 30,2014: $ 3,182,823 Fiscal Year Principal Payments Interest Charges Year End Balance Average Rate* FY2003 $ 2,524,596 $ $ 47,479 $ 2,572,075 2.17% FY2004 $ - $ $ 39,618 $ 2,611,694 1.53% FY2005 $ $ $ 58,636 $ 2,670,330 2.23% FY2006 $ $ $ 104,351 $ 2,774,681 3.84% FY2007 $ $ $ 145,135 $ 2,919,816 5.11% FY2008 $ $ $ 130,735 $ 3,050,551 4.37% FY2009 $ $ $ 67,349 $ 3,117,899 2.18% FY2010 $ $ $ 20,508 $ 3,138,407 0.66% FY2011 $ $ $ 15,384 $ 3,153,791 0.49% FY2012 $ $ $ 11,880 $ 3,165,672 0.38% FY2013 $ $ $ 9,439 $ 3,175,111 0.30% FY2014 $ $ $ 7,712 $ 3,182,823 0.24% Activity to Date $ 2,524,596 $ $ 658,227 $ 3,182,823 2.17% *Average rate reflects pooled investment earning rate applied on a quarterly basis,averaged by fiscal year. Activity to date value reflects average annual rate over life of loan through fiscal year 2013-14. 2015-02-17 Agenda Packet Page 107 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULE Activity through Fiscal Year 2013-14 � CITY OF Loan from Fund: Trunk Sewer Capital Reserve(Fund 413) CHULA VISTA Loan to Fund: Salt Creek Trunk Sewer DIF(Fund 433) Description of Interfund Loan: FY 2003-04 Budget Loan Date: 06/30/2004 Principal Amount: $ 1,000,000 Payments to Date: $ - Interest Charges to Date: $ 218,730 Year End Balance as of June 30,2014: $ 1,218,730 Fiscal Year Principal Payments Interest Charges Year End Balance Average Rate* FY2004 $ 1,000,000 $ $ 39 $ 1,000,039 1.53% FY2005 $ - $ $ 22,452 $ 1,022,492 2.23% FY2006 $ $ $ 39,957 $ 1,062,448 3.84% FY2007 $ $ $ 55,573 $ 1,118,022 5.11% FY2008 $ $ $ 50,059 $ 1,168,081 4.37% FY2009 $ $ $ 25,788 $ 1,193,870 2.18% FY2010 $ $ $ 7,853 $ 1,201,722 0.66% FY2011 $ $ $ 5,891 $ 1,207,613 0.49% FY2012 $ $ $ 4,549 $ 1,212,162 0.38% FY2013 $ $ $ 3,614 $ 1,215,776 0.30% FY2014 $ $ $ 2,953 $ 1,218,730 0.24% Activity to Date $ 1,000,000 $ $ 218,730 $ 1,218,730 1.99% *Average rate reflects pooled investment earning rate applied on a quarterly basis,averaged by fiscal year. Activity to date value reflects average annual rate over life of loan through fiscal year 2013-14. 2015-02-17 Agenda Packet Page 108 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULE Activity through Fiscal Year 2013-14 � CITY OF Loan from Fund: Trunk Sewer Capital Reserve(Fund 413) CHULA VISTA Loan to Fund: Salt Creek Trunk Sewer DIF(Fund 433) Description of Interfund Loan: SW219:Salt Creek Trunk Reach 9a Loan Date: 08/17/2004 Principal Amount: $ 6,115,322 Payments to Date: $ - Interest Charges to Date: $ 1,321,312 Year End Balance as of June 30,2014: $ 7,436,634 Fiscal Year Principal Payments Interest Charges Year End Balance Average Rate* FY2005 $ 6,115,322 $ $ 123,877 $ 6,239,199 2.23% FY2006 $ - $ $ 243,814 $ 6,483,013 3.84% FY2007 $ $ $ 339,107 $ 6,822,120 5.11% FY2008 $ $ $ 305,461 $ 7,127,581 4.37% FY2009 $ $ $ 157,359 $ 7,284,940 2.18% FY2010 $ $ $ 47,916 $ 7,332,857 0.66% FY2011 $ $ $ 35,945 $ 7,368,802 0.49% FY2012 $ $ $ 27,759 $ 7,396,560 0.38% FY2013 $ $ $ 22,054 $ 7,418,614 0.30% FY2014 $ $ $ 18,020 $ 7,436,634 0.24% Activity to Date $ 6,115,322 $ $ 1,321,312 $ 7,436,634 2.16% *Average rate reflects pooled investment earning rate applied on a quarterly basis,averaged by fiscal year. Activity to date value reflects average annual rate over life of loan through fiscal year 2013-14. 2015-02-17 Agenda Packet Page 109 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULE Activity through Fiscal Year 2013-14 � CITY OF Loan from Fund: Trunk Sewer Capital Reserve(Fund 413) CHULA VISTA Loan to Fund: Salt Creek Trunk Sewer DIF(Fund 433) Description of Interfund Loan: SW219:Salt Creek Trunk Reach 7a Loan Date: 08/17/2004 Principal Amount: $ 1,467,879 Payments to Date: $ - Interest Charges to Date: $ 317,158 Year End Balance as of June 30,2014: $ 1,785,037 Fiscal Year Principal Payments Interest Charges Year End Balance Average Rate* FY2005 $ 1,467,879 $ $ 29,735 $ 1,497,614 2.23% FY2006 $ - $ $ 58,523 $ 1,556,137 3.84% FY2007 $ $ $ 81,397 $ 1,637,534 5.11% FY2008 $ $ $ 73,321 $ 1,710,855 4.37% FY2009 $ $ $ 37,771 $ 1,748,626 2.18% FY2010 $ $ $ 11,502 $ 1,760,127 0.66% FY2011 $ $ $ 8,628 $ 1,768,756 0.49% FY2012 $ $ $ 6,663 $ 1,775,418 0.38% FY2013 $ $ $ 5,294 $ 1,780,712 0.30% FY2014 $ $ $ 4,325 $ 1,785,037 0.24% Activity to Date $ 1,467,879 $ $ 317,158 $ 1,785,037 2.16% *Average rate reflects pooled investment earning rate applied on a quarterly basis,averaged by fiscal year. Activity to date value reflects average annual rate over life of loan through fiscal year 2013-14. 2015-02-17 Agenda Packet Page 110 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULE Activity through Fiscal Year 2013-14 � CITY OF Loan from Fund: Trunk Sewer Capital Reserve(Fund 413) CHULA VISTA Loan to Fund: Storm Drain Revenue(Fund 301) Description of Interfund Loan: Resolution 18996 Loan Date: 06/09/1998 Principal Amount: $ 350,000 Payments to Date: $ (500,000) Interest Charges to Date: $ 191,895 Balance Due as of June 30,2014: $ 41,895 Fiscal Year Principal Payments Interest Charges Year End Balance Average Rate* FY1998 $ 350,000 $ $ 1,194 $ 351,194 5.69% FY1999 $ - $ $ 19,234 $ 370,428 5.34% FY2000 $ $ $ 21,611 $ 392,040 5.67% FY2001 $ $ $ 24,675 $ 416,715 6.12% FY2002 $ $ $ 14,517 $ 431,231 3.43% FY2003 $ $ $ 9,472 $ 440,703 2.17% FY2004 $ $ $ 6,788 $ 447,491 1.53% FY2005 $ $ $ 10,047 $ 457,538 2.23% FY2006 $ $ $ 17,880 $ 475,417 3.84% FY2007 $ $ $ 24,868 $ 500,285 5.11% FY2008 $ $ $ 22,400 $ 522,685 4.37% FY2009 $ $ (50,000) $ 11,540 $ 484,225 2.18% FY2010 $ $ (50,000) $ 3,185 $ 437,410 0.66% FY2011 $ $ (100,000) $ 2,144 $ 339,554 0.49% FY2012 $ $ (100,000) $ 1,279 $ 240,833 0.38% FY2013 $ $ (100,000) $ 718 $ 141,551 0.30% FY2014 $ $ (100,000) $ 344 $ 41,895 0.24% Activity to Date $ 350,000 $ (500,000) $ 191,895 $ 41,895 3.23% *Average rate reflects pooled investment earning rate applied on a quarterly basis,averaged by fiscal year. Activity to date value reflects average annual rate over life of loan through fiscal year 2013-14. 2015-02-17 Agenda Packet Page 111 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULE Activity through Fiscal Year 2013-14 � CITY OF Loan from Fund: Trunk Sewer Capital Reserve(Fund 413) CHULA VISTA Loan to Fund: Storm Drain Revenue(Fund 301) Description of Interfund Loan: Resolution 19078 Loan Date: 07/16/1998 Principal Amount: $ 34,500 Payments to Date: $ - Interest Charges to Date: $ 18,949 Balance Due as of June 30,2014: $ 53,449 Fiscal Year Principal Payments Interest Charges Year End Balance Average Rate* FY1999 $ 34,500 $ $ 1,806 $ 36,306 5.34% FY2000 $ - $ $ 2,118 $ 38,424 5.67% FY2001 $ $ $ 2,418 $ 40,842 6.12% FY2002 $ $ $ 1,423 $ 42,265 3.43% FY2003 $ $ $ 928 $ 43,193 2.17% FY2004 $ $ $ 665 $ 43,858 1.53% FY2005 $ $ $ 985 $ 44,843 2.23% FY2006 $ $ $ 1,752 $ 46,596 3.84% FY2007 $ $ $ 2,437 $ 49,033 5.11% FY2008 $ $ $ 2,195 $ 51,228 4.37% FY2009 $ $ $ 1,131 $ 52,359 2.18% FY2010 $ $ $ 344 $ 52,704 0.66% FY2011 $ $ $ 258 $ 52,962 0.49% FY2012 $ $ $ 200 $ 53,161 0.38% FY2013 $ $ $ 159 $ 53,320 0.30% FY2014 $ $ $ 130 $ 53,449 0.24% Activity to Date $ 34,500 $ $ 18,949 $ 53,449 3.43% *Average rate reflects pooled investment earning rate applied on a quarterly basis,averaged by fiscal year. Activity to date value reflects average annual rate over life of loan through fiscal year 2013-14. 2015-02-17 Agenda Packet Page 112 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULE Activity through Fiscal Year 2013-14 � CITY OF Loan from Fund: Trunk Sewer Capital Reserve(Fund 413) CHULA VISTA Loan to Fund: Storm Drain Revenue(Fund 301) Description of Interfund Loan: Resolution 19607 Loan Date: 11/24/1999 Principal Amount: $ 141,000 Payments to Date: $ - Interest Charges to Date: $ 62,226 Balance Due as of June 30,2014: $ 203,226 Fiscal Year Principal Payments Interest Charges Year End Balance Average Rate* FY2000 $ 141,000 $ $ 5,095 $ 146,095 5.67% FY2001 $ - $ $ 9,195 $ 155,290 6.12% FY2002 $ $ $ 5,410 $ 160,700 3.43% FY2003 $ $ $ 3,530 $ 164,230 2.17% FY2004 $ $ $ 2,530 $ 166,759 1.53% FY2005 $ $ $ 3,744 $ 170,503 2.23% FY2006 $ $ $ 6,663 $ 177,166 3.84% FY2007 $ $ $ 9,267 $ 186,433 5.11% FY2008 $ $ $ 8,348 $ 194,781 4.37% FY2009 $ $ $ 4,300 $ 199,081 2.18% FY2010 $ $ $ 1,309 $ 200,390 0.66% FY2011 $ $ $ 982 $ 201,373 0.49% FY2012 $ $ $ 759 $ 202,131 0.38% FY2013 $ $ $ 603 $ 202,734 0.30% FY2014 $ $ $ 492 $ 203,226 0.24% Activity to Date $ 141,000 $ $ 62,226 $ 203,226 2.94% *Average rate reflects pooled investment earning rate applied on a quarterly basis,averaged by fiscal year. Activity to date value reflects average annual rate over life of loan through fiscal year 2013-14. 2015-02-17 Agenda Packet Page 113 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULE Activity through Fiscal Year 2013-14 � CITY OF Loan from Fund: Trunk Sewer Capital Reserve(Fund 413) CHULA VISTA Loan to Fund: Storm Drain Revenue(Fund 301) Description of Interfund Loan: Resolution 19682 Loan Date: 01/18/2000 Principal Amount: $ 50,523 Payments to Date: $ - Interest Charges to Date: $ 21,688 Balance Due as of June 30,2014: $ 72,211 Fiscal Year Principal Payments Interest Charges Year End Balance Average Rate* FY2000 $ 50,523 $ $ 1,388 $ 51,911 5.67% FY2001 $ - $ $ 3,267 $ 55,178 6.12% FY2002 $ $ $ 1,922 $ 57,100 3.43% FY2003 $ $ $ 1,254 $ 58,355 2.17% FY2004 $ $ $ 899 $ 59,253 1.53% FY2005 $ $ $ 1,330 $ 60,584 2.23% FY2006 $ $ $ 2,367 $ 62,951 3.84% FY2007 $ $ $ 3,293 $ 66,244 5.11% FY2008 $ $ $ 2,966 $ 69,210 4.37% FY2009 $ $ $ 1,528 $ 70,738 2.18% FY2010 $ $ $ 465 $ 71,203 0.66% FY2011 $ $ $ 349 $ 71,552 0.49% FY2012 $ $ $ 270 $ 71,822 0.38% FY2013 $ $ $ 214 $ 72,036 0.30% FY2014 $ $ $ 175 $ 72,211 0.24% Activity to Date $ 50,523 $ $ 21,688 $ 72,211 2.86% *Average rate reflects pooled investment earning rate applied on a quarterly basis,averaged by fiscal year. Activity to date value reflects average annual rate over life of loan through fiscal year 2013-14. 2015-02-17 Agenda Packet Page 114 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULE Activity through Fiscal Year 2013-14 � CITY OF Loan from Fund: Sewer Facility Replacement(Fund 428) CHULA VISTA Loan to Fund: Storm Drain Revenue(Fund 301) Description of Interfund Loan: FY 2000-01 Budget Loan Date: 12/29/2000 Principal Amount: $ 300,000 Payments to Date: $ (105,825) Interest Charges to Date: $ 90,686 Balance Due as of June 30,2014: $ 284,861 Fiscal Year Principal Payments Interest Charges Year End Balance Average Rate* FY2001 $ 300,000 $ $ 8,803 $ 308,803 6.12% FY2002 $ - $ $ 10,757 $ 319,560 3.43% FY2003 $ $ $ 7,019 $ 326,579 2.17% FY2004 $ $ $ 5,030 $ 331,610 1.53% FY2005 $ $ $ 7,445 $ 339,055 2.23% FY2006 $ $ (75,825) $ 12,390 $ 275,620 3.84% FY2007 $ $ - $ 14,417 $ 290,036 5.11% FY2008 $ $ (30,000) $ 12,986 $ 273,023 4.37% FY2009 $ $ $ 6,028 $ 279,051 2.18% FY2010 $ $ $ 1,835 $ 280,886 0.66% FY2011 $ $ $ 1,377 $ 282,263 0.49% FY2012 $ $ $ 1,063 $ 283,326 0.38% FY2013 $ $ $ 845 $ 284,171 0.30% FY2014 $ $ $ 690 $ 284,861 0.24% Activity to Date $ 300,000 $ (105,825) $ 90,686 $ 284,861 2.16% *Average rate reflects pooled investment earning rate applied on a quarterly basis,averaged by fiscal year. Activity to date value reflects average annual rate over life of loan through fiscal year 2013-14. 2015-02-17 Agenda Packet Page 115 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULE Activity through Fiscal Year 2013-14 � CITY OF Loan from Fund: Sewer Facility Replacement(Fund 428) CHULA VISTA Loan to Fund: Storm Drain Revenue(Fund 301) Description of Interfund Loan: FY 2001-02 Budget Loan Date: 12/04/2001 Principal Amount: $ 340,000 Payments to Date: $ (82,445) Interest Charges to Date: $ 84,076 Balance Due as of June 30,2014: $ 341,631 Fiscal Year Principal Payments Interest Charges Year End Balance Average Rate* FY2002 $ 340,000 $ $ 5,772 $ 345,772 3.43% FY2003 $ - $ $ 7,595 $ 353,367 2.17% FY2004 $ $ $ 5,443 $ 358,810 1.53% FY2005 $ $ $ 8,056 $ 366,866 2.23% FY2006 $ $ (82,445) $ 13,402 $ 297,822 3.84% FY2007 $ $ $ 15,578 $ 313,400 5.11% FY2008 $ $ $ 14,033 $ 327,433 4.37% FY2009 $ $ $ 7,229 $ 334,662 2.18% FY2010 $ $ $ 2,201 $ 336,863 0.66% FY2011 $ $ $ 1,651 $ 338,514 0.49% FY2012 $ $ $ 1,275 $ 339,790 0.38% FY2013 $ $ $ 1,013 $ 340,803 0.30% FY2014 $ $ $ 828 $ 341,631 0.24% Activity to Date $ 340,000 $ (82,445) $ 84,076 $ 341,631 1.90% *Average rate reflects pooled investment earning rate applied on a quarterly basis,averaged by fiscal year. Activity to date value reflects average annual rate over life of loan through fiscal year 2013-14. 2015-02-17 Agenda Packet Page 116 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULE Activity through Fiscal Year 2013-14 � CITY OF Loan from Fund: General Fund (Fund 100) CHULA VISTA Loan to Fund: PFDIF-Civic Center(Fund 572) Description of Interfund Loan: Resolution 2008-141 Loan Date: 10/24/2008 Principal Amount: $ 1,528,969 Payments to Date: $ (94,302) Interest Charges to Date: $ 51,345 Balance Due as of June 30,2014: $ 1,486,012 Fiscal Year Principal Payments Interest Charges Year End Balance Average Rate* FY2009 $ 1,528,969 $ - $ 20,417 $ 1,549,386 2.18% FY2010 $ - $ (94,302) $ 10,191 $ 1,465,275 0.66% FY2011 $ $ $ 7,183 $ 1,472,458 0.49% FY2012 $ $ $ 5,547 $ 1,478,005 0.38% FY2013 $ $ $ 4,407 $ 1,482,411 0.30% FY2014 $ $ $ 3,601 $ 1,486,012 0.24% Activity to Date $ 1,528,969 $ (94,302) $ 51,345 $ 1,486,012 0.56% *Average rate reflects pooled investment earning rate applied on a quarterly basis,averaged by fiscal year. Activity to date value reflects average annual rate over life of loan through fiscal year 2013-14. 2015-02-17 Agenda Packet Page 117 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULE Activity through Fiscal Year 2013-14 � CITY OF Loan from Fund: Transportation DIF(Fund 591) CHULA VISTA Loan to Fund: PFDIF-Fire Suppression(Fund 576) Description of Interfund Loan: Resolution 2008-300 Loan Date: 01/02/2009 Principal Amount: $ 5,200,000 Payments to Date: $ - Interest Charges to Date: $ 153,142 Balance Due as of June 30,2014: $ 5,353,142 Fiscal Year Principal Payments Interest Charges Year End Balance Average Rate* FY2009 $ 5,200,000 $ $ 43,948 $ 5,243,948 2.18% FY2010 $ - $ $ 34,492 $ 5,278,439 0.66% FY2011 $ $ $ 25,875 $ 5,304,314 0.49% FY2012 $ $ $ 19,982 $ 5,324,296 0.38% FY2013 $ $ $ 15,875 $ 5,340,170 0.30% FY2014 $ $ $ 12,971 $ 5,353,142 0.24% Activity to Date $ 5,200,000 $ $ 153,142 $ 5,353,142 0.49% *Average rate reflects pooled investment earning rate applied on a quarterly basis,averaged by fiscal year. Activity to date value reflects average annual rate over life of loan through fiscal year 2013-14. 2015-02-17 Agenda Packet Page 118 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULE Activity through Fiscal Year 2013-14 � CITY OF Loan from Fund: Transportation DIF(Fund 591) CHULA VISTA Loan to Fund: PFDIF-Fire Suppression(Fund 576) Description of Interfund Loan: Resolution 2009-137 Loan Date: 01/01/2010 Principal Amount: $ 5,300,000 Payments to Date: $ (430,928) Interest Charges to Date: $ 89,873 Balance Due as of June 30,2014: $ 4,958,945 Fiscal Year Principal Payments Interest Charges Year End Balance Average Rate* FY2010 $ 5,300,000 $ $ 14,735 $ 5,314,735 0.66% FY2011 $ - $ $ 26,052 $ 5,340,788 0.49% FY2012 $ $ $ 20,119 $ 5,360,906 0.38% FY2013 $ $ $ 15,984 $ 5,376,891 0.30% FY2014 $ $ (430,928) $ 12,983 $ 4,958,945 0.24% Activity to Date $ 5,300,000 $ (430,928) $ 89,873 $ 4,958,945 0.34% *Average rate reflects pooled investment earning rate applied on a quarterly basis,averaged by fiscal year. Activity to date value reflects average annual rate over life of loan through fiscal year 2013-14. 2015-02-17 Agenda Packet Page 119 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULE Activity through Fiscal Year 2013-14 � CITY OF Loan from Fund: Transportation DIF(Fund 591) CHULA VISTA Loan to Fund: Western TDIF(Fund 593) Description of Interfund Loan: FY 2008-09 Budget Loan Date: 05/11/2009 Principal Amount: $ 180,000 Payments to Date: $ (189,745) Interest Charges to Date: $ 3,301 Balance Due as of June 30,2014: $ (6,444) Fiscal Year Principal Payments Interest Charges Year End Balance Average Rate* FY2009 $ 180,000 $ $ 380 $ 180,380 2.18% FY2010 $ - $ $ 1,186 $ 181,566 0.66% FY2011 $ $ $ 890 $ 182,456 0.49% FY2012 $ $ (152,894) $ 687 $ 30,250 0.38% FY2013 $ $ - $ 90 $ 30,340 0.30% FY2014 $ $ (36,851) $ 67 $ (6,444) 0.24% Activity to Date $ 180,000 $ (189,745) $ 3,301 $ (6,444) 0.31% *Average rate reflects pooled investment earning rate applied on a quarterly basis,averaged by fiscal year. Activity to date value reflects average annual rate over life of loan through fiscal year 2013-14. 2015-02-17 Agenda Packet Page 120 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULE Activity through Fiscal Year 2013-14 � CITY OF Loan from Fund: Eastern PAD(Fund 715) CHULA VISTA Loan to Fund: Western PAD(Fund 716) Description of Interfund Loan: Resolution 2010-052 Loan Date: 07/01/2010 Principal Amount: $ 9,630,000 Payments to Date: $ - Interest Charges to Date: $ 136,287 Balance Due as of June 30,2014: $ 9,766,287 Fiscal Year Principal Payments Interest Charges Year End Balance Average Rate* FY2011 $ 9,630,000 $ $ 47,206 $ 9,677,206 0.49% FY2012 $ - $ $ 36,454 $ 9,713,660 0.38% FY2013 $ $ $ 28,962 $ 9,742,622 0.30% FY2014 $ $ $ 23,665 $ 9,766,287 0.24% Activity to Date $ 9,630,000 $ $ 136,287 $ 9,766,287 0.35% *Average rate reflects pooled investment earning rate applied on a quarterly basis,averaged by fiscal year. Activity to date value reflects average annual rate over life of loan through fiscal year 2013-14. 2015-02-17 Agenda Packet Page 121 ATTACHMENT 2 INTERFUND LOAN PAYMENT SCHEDULE Activity through Fiscal Year 2013-14 � CITY OF Loan from Fund: Eastern PAD(Fund 715) CHULA VISTA Loan to Fund: Western PAD(Fund 716) Description of Interfund Loan: Resolution 2011-241 Loan Date: 12/06/2011 Principal Amount: $ 310,000 Payments to Date: $ - Interest Charges to Date: $ 2,340 Balance Due as of June 30,2014: $ 312,340 Fiscal Year Principal Payments Interest Charges Year End Balance Average Rate* FY2012 $ 310,000 $ $ 656 $ 310,656 0.38% FY2013 $ - $ $ 926 $ 311,583 0.30% FY2014 $ - $ $ 757 $ 312,340 0.24% Activity to Date $ 310,000 $ $ 2,340 $ 312,340 0.25% *Average rate reflects pooled investment earning rate applied on a quarterly basis,averaged by fiscal year. Activity to date value reflects average annual rate over life of loan through fiscal year 2013-14. 2015-02-17 Agenda Packet Page 122 ATTACHMENT 3 CONSOLIDATED INTERFUND LOAN AMORTIZATION SCHEDULES Forward Fiscal Year 2014-15 CITY OF CHUIA VISTA 2015-02-17 Agenda Packet Page 123 ATTACHMENT 3 CONSOLIDATED INTERFUND LOAN AMORTIZATION SCHEDULE M�r Loan from Fund: Trunk Sewer Capital Reserve(Fund 413) ` Loan to Fund: Salt Creek Trunk Sewer DIF(Fund 433) CITY OF CHULA VISTA LOAN CONSOLIDATION SUMMARY Original Principal: $ 20,667,477 Payments through June 30,2014: $ (2,500,083) Interest Charges through June 30,2014: $ 5,897,663 Balance Due as of June 30,2014: $ 24,065,057 CONSOLIDATED LOAN TERMS Current Pooled Investment Earning Rate: 0.22% Annual Repayment Amount: $ 1,120,000 Repayment Term(Years) 20 Total Interest Charges: $ 505,411 Grand Total Interest Charges: $ 6,403,074 Cumulative Fiscal Year Principal Interest Annual Total Interest Ending Balance Extra Payment $ 2,380,000 $ - $ 2,380,000 $ 21,685,057 FY2015 $ 1,067,057 $ 52,943 $ 1,120,000 $ 52,943 $ 20,618,000 FY2016 $ 1,074,640 $ 45,360 $ 1,120,000 $ 98,303 $ 19,543,360 FY2017 $ 1,077,005 $ 42,995 $ 1,120,000 $ 141,298 $ 18,466,355 FY2018 $ 1,079,374 $ 40,626 $ 1,120,000 $ 181,924 $ 17,386,981 FY2019 $ 1,081,749 $ 38,251 $ 1,120,000 $ 220,175 $ 16,305,233 FY2020 $ 1,084,128 $ 35,872 $ 1,120,000 $ 256,047 $ 15,221,104 FY2021 $ 1,086,514 $ 33,486 $ 1,120,000 $ 289,533 $ 14,134,591 FY2022 $ 1,088,904 $ 31,096 $ 1,120,000 $ 320,630 $ 13,045,687 FY2023 $ 1,091,299 $ 28,701 $ 1,120,000 $ 349,330 $ 11,954,387 FY2024 $ 1,093,700 $ 26,300 $ 1,120,000 $ 375,630 $ 10,860,687 FY2025 $ 1,096,106 $ 23,894 $ 1,120,000 $ 399,523 $ 9,764,580 FY2026 $ 1,098,518 $ 21,482 $ 1,120,000 $ 421,005 $ 8,666,062 FY2027 $ 1,100,935 $ 19,065 $ 1,120,000 $ 440,071 $ 7,565,128 FY2028 $ 1,103,357 $ 16,643 $ 1,120,000 $ 456,714 $ 6,461,771 FY2029 $ 1,105,784 $ 14,216 $ 1,120,000 $ 470,930 $ 5,355,987 FY2030 $ 1,108,217 $ 11,783 $ 1,120,000 $ 482,713 $ 4,247,770 FY2031 $ 1,110,655 $ 9,345 $ 1,120,000 $ 492,058 $ 3,137,115 FY2032 $ 1,113,098 $ 6,902 $ 1,120,000 $ 498,960 $ 2,024,017 FY2033 $ 1,115,547 $ 4,453 $ 1,120,000 $ 503,413 $ 908,470 FY2034 $ 908,470 $ 1,999 $ 910,468 $ 505,411 $ - Total $ 24,065,057 $ 505,411 $ 24,570,468 $ 505,411 $ 2015-02-17 Agenda Packet Page 124 ATTACHMENT 3 CONSOLIDATED INTERFUND LOAN AMORTIZATION SCHEDULE ���r Loan from Fund: Trunk Sewer Capital Reserve(Fund 413) +' Loan to Fund: Storm Drain Revenue(Fund 301) CITY OF CHULA VISTA LOAN CONSOLIDATION SUMMARY Original Principal: $ 576,023 Payments through June 30,2014: $ (500,000) Interest Charges through June 30,2014: $ 294,759 Balance Due as of June 30,2014: $ 370,782 CONSOLIDATED LOAN TERMS Current Pooled Investment Earning Rate: 0.22% Annual Repayment Amount: $ 371,190 Repayment Term(Years) 1 Total Interest Charges: $ 408 Grand Total Interest Charges: $ 295,167 Cumulative Fiscal Year Principal Interest Annual Total Interest Ending Balance FY2015 $ 370,782 $ 408 $ 371,190 408 $ Total $ 370,782 $ 408 $ 371,190 $ 408 $ 2015-02-17 Agenda Packet Page 125 ATTACHMENT 3 CONSOLIDATED INTERFUND LOAN AMORTIZATION SCHEDULE M�r Loan from Fund: Sewer Facility Replacement(Fund 428) ` Loan to Fund: Storm Drain Revenue(Fund 301) CITY OF CHULA VISTA LOAN CONSOLIDATION SUMMARY Original Principal: $ 640,000 Payments through June 30,2014: $ (188,270) Interest Charges through June 30,2014: $ 174,762 Balance Due as of June 30,2014: $ 626,492 CONSOLIDATED LOAN TERMS Current Pooled Investment Earning Rate: 0.22% Annual Repayment Amount: $ 210,000 Repayment Term(Years) 3 Total Interest Charges: $ 2,358 Grand Total Interest Charges: $ 177,120 Cumulative Fiscal Year Principal Interest Annual Total Interest Ending Balance Extra Payment $ 90,519 $ - $ 90,519 $ 535,973 FY2015 $ 210,000 $ 1,378 $ 211,378 $ 1,378 $ 325,973 FY2016 $ 210,000 $ 720 $ 210,720 $ 2,098 $ 118,071 FY2017 $ 118,331 $ 260 $ 118,591 $ 2,358 $ - Total $ 628,850 $ 2,358 $ 631,208 $ 2,358 $ 2015-02-17 Agenda Packet Page 126 ATTACHMENT 3 CONSOLIDATED INTERFUND LOAN AMORTIZATION SCHEDULE M�r Loan from Fund: General Fund (Fund 100) ` Loan to Fund: PFDIF-Civic Center(Fund 572) CITY OF CHULA VISTA LOAN CONSOLIDATION SUMMARY Original Principal: $ 1,528,969 Payments through June 30,2014: $ (94,302) Interest Charges through June 30,2014: $ 51,345 Balance Due as of June 30,2014: $ 1,486,012 CONSOLIDATED LOAN TERMS Current Pooled Investment Earning Rate: 0.22% Annual Repayment Amount: $ 300,000 Repayment Term(Years) 5 Total Interest Charges: $ 9,804 Grand Total Interest Charges: $ 61,149 Cumulative Fiscal Year Principal Interest Annual Total Interest Ending Balance FY2015 $ 296,731 $ 3,269 $ 300,000 $ 3,269 $ 1,189,281 FY2016 $ 297,384 $ 2,616 $ 300,000 $ 5,886 $ 891,898 FY2017 $ 298,038 $ 1,962 $ 300,000 $ 7,848 $ 593,860 FY2018 $ 298,694 $ 1,306 $ 300,000 $ 9,154 $ 295,167 FY2019 $ 295,167 $ 649 $ 295,816 $ 9,804 $ - Total $ 1,486,012 $ 9,804 $ 1,495,816 $ 9,804 $ 2015-02-17 Agenda Packet Page 127 ATTACHMENT 3 CONSOLIDATED INTERFUND LOAN AMORTIZATION SCHEDULE M�r Loan from Fund: Transportation DIF(Fund 591) ` Loan to Fund: PFDIF-Fire Suppression(Fund 576) CITY OF CHULA VISTA LOAN CONSOLIDATION SUMMARY Original Principal: $ 10,500,000 Payments through June 30,2014: $ (430,928) Interest Charges through June 30,2014: $ 243,015 Balance Due as of June 30,2014: $ 10,312,087 CONSOLIDATED LOAN TERMS Current Pooled Investment Earning Rate: 0.22% Annual Repayment Amount: $ 1,045,000 Repayment Term(Years) 10 Total Interest Charges: $ 123,147 Grand Total Interest Charges: $ 366,161 Cumulative Fiscal Year Principal Interest Annual Total Interest Ending Balance Extra Payment $ 95,824 $ - $ 95,824 $ - $ 10,216,263 FY2015 $ 1,022,313 $ 22,687 $ 1,045,000 $ 22,687 $ 9,193,949 FY2016 $ 1,024,773 $ 20,227 $ 1,045,000 $ 42,913 $ 8,169,176 FY2017 $ 1,027,028 $ 17,972 $ 1,045,000 $ 60,885 $ 7,142,148 FY2018 $ 1,029,287 $ 15,713 $ 1,045,000 $ 76,598 $ 6,112,861 FY2019 $ 1,031,552 $ 13,448 $ 1,045,000 $ 90,046 $ 5,081,309 FY2020 $ 1,033,821 $ 11,179 $ 1,045,000 $ 101,225 $ 4,047,488 FY2021 $ 1,036,096 $ 8,904 $ 1,045,000 $ 110,130 $ 3,011,393 FY2022 $ 1,038,375 $ 6,625 $ 1,045,000 $ 116,755 $ 1,973,018 FY2023 $ 1,040,659 $ 4,341 $ 1,045,000 $ 121,096 $ 932,358 FY2024 $ 932,358 $ 2,051 $ 934,409 $ 123,147 $ - Total $ 10,216,263 $ 123,147 $ 10,339,409 $ 123,147 $ 2015-02-17 Agenda Packet Page 128 ATTACHMENT 3 CONSOLIDATED INTERFUND LOAN AMORTIZATION SCHEDULE M�r Loan from Fund: Eastern PAD(Fund 715) ` Loan to Fund: Western PAD(Fund 716) CITY OF CHULA VISTA LOAN CONSOLIDATION SUMMARY Original Principal: $ 9,940,000 Payments through June 30,2014: $ - Interest Charges through June 30,2014: $ 138,627 Balance Due as of June 30,2014: $ 10,078,627 CONSOLIDATED LOAN TERMS Current Pooled Investment Earning Rate: 0.22% Annual Repayment Amount: $ 515,000 Repayment Term(Years) 20 Total Interest Charges: $ 234,713 Grand Total Interest Charges: $ 373,340 Cumulative Fiscal Year Principal Interest Annual Total Interest Ending Balance FY2015 $ 492,827 $ 22,173 $ 515,000 $ 22,173 $ 9,585,800 FY2016 $ 493,911 $ 21,089 $ 515,000 $ 43,262 $ 9,091,888 FY2017 $ 494,998 $ 20,002 $ 515,000 $ 63,264 $ 8,596,890 FY2018 $ 496,087 $ 18,913 $ 515,000 $ 82,177 $ 8,100,804 FY2019 $ 497,178 $ 17,822 $ 515,000 $ 99,999 $ 7,603,625 FY2020 $ 498,272 $ 16,728 $ 515,000 $ 116,727 $ 7,105,353 FY2021 $ 499,368 $ 15,632 $ 515,000 $ 132,359 $ 6,605,985 FY2022 $ 500,467 $ 14,533 $ 515,000 $ 146,892 $ 6,105,518 FY2023 $ 501,568 $ 13,432 $ 515,000 $ 160,324 $ 5,603,950 FY2024 $ 502,671 $ 12,329 $ 515,000 $ 172,653 $ 5,101,279 FY2025 $ 503,777 $ 11,223 $ 515,000 $ 183,875 $ 4,597,502 FY2026 $ 504,886 $ 10,115 $ 515,000 $ 193,990 $ 4,092,616 FY2027 $ 505,996 $ 9,004 $ 515,000 $ 202,994 $ 3,586,620 FY2028 $ 507,109 $ 7,891 $ 515,000 $ 210,884 $ 3,079,511 FY2029 $ 508,225 $ 6,775 $ 515,000 $ 217,659 $ 2,571,286 FY2030 $ 509,343 $ 5,657 $ 515,000 $ 223,316 $ 2,061,943 FY2031 $ 510,464 $ 4,536 $ 515,000 $ 227,852 $ 1,551,479 FY2032 $ 511,587 $ 3,413 $ 515,000 $ 231,265 $ 1,039,892 FY2033 $ 512,712 $ 2,288 $ 515,000 $ 233,553 $ 527,180 FY2034 $ 527,180 $ 1,160 $ 528,340 $ 234,713 $ - Total $ 10,078,627 $ 234,713 $ 10,313,340 $ 234,713 $ 2015-02-17 Agenda Packet Page 129 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING AN INTERFUND LOAN POLICY WHEREAS, in accordance with generally accepted accounting principles and applicable legal requirements, the City has established various special revenue, capital project, debt service, and enterprise funds to account for revenues whose use should be restricted to certain activities; and WHEREAS, on occasion, cash flow constraints in a particular fund may necessitate interim financing of capital projects; and WHEREAS, interfund borrowings are an appropriate capital project financing alternative to incurring external debt, provided that the fiduciary purpose of the loaning fund is not negatively impacted; and WHEREAS, interfund borrowings should be limited to one-time capital expenditures and are not an appropriate funding source for ongoing operations and maintenance activities; and WHEREAS,no City fund should profit nor be penalized for internal borrowings; and WHEREAS, the proposed interfund loan policy establishes standard terms and documentation required for interfund borrowings; and WHEREAS, the City Council wishes to adopt an Interfund Loan Policy, as set forth in Exhibit 1, attached hereto and incorporated herein by reference as if set forth in full. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby adopt the Interfund Loan Policy in the form presented, as reflected in Exhibit I to this Resolution. Presented by Approved as to form by Maria Kachadoorian Glen R. Googins Deputy City Manager City Attorney 2015-02-17 Agenda Packet Page 130 EXHIBIT 1 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Interfund Loan Policy POLICY EFFECTIVE NUMBER DATE PAGE IofI ADOPTED BY: Resolution No. DATED: December 16,2014 AMENDED BY: BACKGROUND In order to achieve important public policy goals, and in accordance with generally accepted accounting principles (GAAP) and applicable legal requirements, the City has established various special revenue, capital project, debt service, and enterprise funds to account for revenues whose use should be restricted to certain activities. Accordingly, each fund exists as a separate financing entity from other funds,with its own revenue sources, expenditures, and fund equity. On occasion, cash flow constraints in a particular fund may necessitate interim financing of capital projects. Interfund borrowings are an appropriate capital project financing alternative to incurring external debt, provided that the fiduciary purpose of the loaning fund is not negatively impacted. Interfund borrowings should be limited to one-time capital expenditures and are not an appropriate funding source for ongoing operations and maintenance activities. PURPOSE To establish an interfund loan policy, including the standard terms and documentation required for interfund borrowings. POLICY All interfund loans require approval of the City Council. At the time of City Council consideration, the following information shall be provided, at minimum: 1. The purpose of the loan 2. The principal amount borrowed 3. The expected repayment term 4. The most recent monthly pooled investment earning rate 5. The estimated total financing cost 6. A proposed repayment plan, reflecting the above factors 7. The existing interfund loan and external debt obligations of the borrowing fund 8. The existing balance of Interfund loan advances from the loaning fund No fund should profit nor be penalized for internal borrowings. As such, all financing costs shall be calculated using the City's actual pooled investment earning rate, as determined by the Finance Director/Treasurer. Following Council approval, throughout the life of the loan, the actual financing cost shall be calculated based upon the City's actual pooled investment earning rate on a quarterly basis. 2015-02-17 Agenda Packet Page 131 EXHIBIT 1 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Interfund Loan Policy POLICY EFFECTIVE NUMBER DATE PAGE 2of1 ADOPTED BY: Resolution No. DATED: December 16,2014 AMENDED BY: In order to limit impacts to loaning funds, the shortest reasonable repayment term is preferred. The repayment of interfund loans shall, therefore,be considered priority expenses for debtor funds during the annual budget process. 2015-02-17 Agenda Packet Page 132 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AFFIRMING AND CONSOLIDATING EXISTING INTERFUND LOANS FROM THE TRUNK SEWER CAPITAL RESERVE FUND TO THE SALT CREEK TRUNK SEWER DEVELOPMENT IMPACT FEE FUND WITH A PRINCIPAL AMOUNT OF $20,667,477 AND APPROVING A CONSOLIDATED INTERFUND LOAN REPAYMENT SCHEDULE REFLECTING FINANCING COSTS AND REPAYMENTS TO DATE WHEREAS, the Trunk Sewer Capital Reserve fund previously loaned $20,667,477 to the Salt Creek Trunk Sewer Development Impact Fee fund to finance capital improvements through a combination of City Council approved interfund loans and direct project expenditures; and WHEREAS, in compliance with the proposed Interfund Loan Policy under consideration by the City Council on this same date, staff recommends consolidating all interfund borrowings between these two funds, reflecting all payments through June 30, 2014 and recalculating interest charges through the same date using the City's actual pooled investment earnings; and WHEREAS, the balance due as of June 30, 2014 after accounting for all payments and interest charges totals $24,065,057; and WHEREAS, a consolidated interfund loan repayment schedule reflecting a 20-year repayment term and the City's current pooled investment earning rate has been prepared and is set forth in Exhibit 1, attached hereto and incorporated herein by reference as if set forth in full; and WHEREAS, future financing costs incurred as a result of this borrowing will vary based on the City's actual pooled investment earnings and the availability of funds to repay the debt. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby affirm and consolidate existing interfund loans from the Trunk Sewer Capital Reserve fund to the Salt Creek Trunk Sewer Development Impact Fee fund with a principal amount of$20,667,477. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it does hereby approve a consolidated interfund loan repayment schedule reflecting financing costs and repayments to date in the form presented and as reflected in Exhibit 1 to this Resolution, subject to administrative adjustment based on actual pooled investment earning rates and availability of funds to repay the debt. 2015-02-17 Agenda Packet Page 133 Presented by Approved as to form by Maria Kachadoorian Glen R. Googins Deputy City Manager City Attorney 2015-02-17 Agenda Packet Page 134 EXHIBIT 1 CONSOLIDATED INTERFUND LOAN AMORTIZATION SCHEDULE S f/ Loan from Fund: Trunk Sewer Capital Reserve(Fund 413) ` Loan to Fund: Salt Creek Trunk Sewer DIF(Fund 433) CITY OF CHULA VISTA LOAN CONSOLIDATION SUMMARY Original Principal: $ 20,667,477 Payments through June 30,2014: $ (2,500,083) Interest Charges through June 30,2014: $ 5,897,663 Balance Due as of June 30,2014: $ 24,065,057 CONSOLIDATED LOAN TERMS Current Pooled Investment Earning Rate: 0.22% Annual Repayment Amount: $ 1,120,000 Repayment Term(Years) 20 Total Interest Charges: $ 505,411 Grand Total Interest Charges: $ 6,403,074 Cumulative Fiscal Year Principal Interest Annual Total Interest Ending Balance Extra Payment $ 2,380,000 $ - $ 2,380,000 $ 21,685,057 FY2015 $ 1,067,057 $ 52,943 $ 1,120,000 $ 52,943 $ 20,618,000 FY2016 $ 1,074,640 $ 45,360 $ 1,120,000 $ 98,303 $ 19,543,360 FY2017 $ 1,077,005 $ 42,995 $ 1,120,000 $ 141,298 $ 18,466,355 FY2018 $ 1,079,374 $ 40,626 $ 1,120,000 $ 181,924 $ 17,386,981 FY2019 $ 1,081,749 $ 38,251 $ 1,120,000 $ 220,175 $ 16,305,233 FY2020 $ 1,084,128 $ 35,872 $ 1,120,000 $ 256,047 $ 15,221,104 FY2021 $ 1,086,514 $ 33,486 $ 1,120,000 $ 289,533 $ 14,134,591 FY2022 $ 1,088,904 $ 31,096 $ 1,120,000 $ 320,630 $ 13,045,687 FY2023 $ 1,091,299 $ 28,701 $ 1,120,000 $ 349,330 $ 11,954,387 FY2024 $ 1,093,700 $ 26,300 $ 1,120,000 $ 375,630 $ 10,860,687 FY2025 $ 1,096,106 $ 23,894 $ 1,120,000 $ 399,523 $ 9,764,580 FY2026 $ 1,098,518 $ 21,482 $ 1,120,000 $ 421,005 $ 8,666,062 FY2027 $ 1,100,935 $ 19,065 $ 1,120,000 $ 440,071 $ 7,565,128 FY2028 $ 1,103,357 $ 16,643 $ 1,120,000 $ 456,714 $ 6,461,771 FY2029 $ 1,105,784 $ 14,216 $ 1,120,000 $ 470,930 $ 5,355,987 FY2030 $ 1,108,217 $ 11,783 $ 1,120,000 $ 482,713 $ 4,247,770 FY2031 $ 1,110,655 $ 9,345 $ 1,120,000 $ 492,058 $ 3,137,115 FY2032 $ 1,113,098 $ 6,902 $ 1,120,000 $ 498,960 $ 2,024,017 FY2033 $ 1,115,547 $ 4,453 $ 1,120,000 $ 503,413 $ 908,470 FY2034 $ 908,470 $ 1,999 $ 910,468 $ 505,411 $ - Total $ 24,065,057 $ 505,411 $ 24,570,468 $ 505,411 $ 2015-02-17 Agenda Packet Page 135 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AFFIRMING AND CONSOLIDATING EXISTING INTERFUND LOANS FROM THE TRUNK SEWER CAPITAL RESERVE FUND TO THE STORM DRAIN REVENUE FUND WITH A PRINCIPAL AMOUNT OF $576,023 AND APPROVING A CONSOLIDATED INTERFUND LOAN REPAYMENT SCHEDULE REFLECTING FINANCING COSTS AND REPAYMENTS TO DATE WHEREAS, the Trunk Sewer Capital Reserve fund previously loaned $576,023 to the Storm Drain Revenue fund to finance capital improvements via City Council approved interfund loans; and WHEREAS, in compliance with the proposed Interfund Loan Policy under consideration by the City Council on this same date, staff recommends consolidating all interfund borrowings between these two funds, reflecting all payments through June 30, 2014 and recalculating interest charges through the same date using the City's actual pooled investment earnings; and WHEREAS, the balance due as of June 30, 2014 after accounting for all payments and interest charges totals $370,782; and WHEREAS, a consolidated interfund loan repayment schedule reflecting repayment in full in as of January 1, 2015 and the City's current pooled investment earning rate has been prepared and is set forth in Exhibit 1, attached hereto and incorporated herein by reference as if set forth in full; and WHEREAS, financing costs incurred in fiscal year 2014-15 as a result of this borrowing will vary based on the City's actual pooled investment earnings. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby affirm and consolidate existing interfund loans from the Trunk Sewer Capital Reserve fund to the Storm Drain Revenue fund with a principal amount of$576,023. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it does hereby approve a consolidated interfund loan repayment schedule reflecting financing costs and repayments to date in the form presented and as reflected in Exhibit I to this Resolution, subject to administrative adjustment, as may be directed by the Director of Finance/Treasurer, based on actual pooled investment earning rates and availability of funds to repay the debt. 2015-02-17 Agenda Packet Page 136 Presented by Approved as to form by Maria Kachadoorian Glen R. Googins Deputy City Manager City Attorney 2015-02-17 Agenda Packet Page 137 EXHIBIT 1 CONSOLIDATED INTERFUND LOAN AMORTIZATION SCHEDULE f/� Loan from Fund: Trunk Sewer Capital Reserve(Fund 413) +" Loan to Fund: Storm Drain Revenue(Fund 301) CITY OF CHULA VISTA LOAN CONSOLIDATION SUMMARY Original Principal: $ 576,023 Payments through June 30,2014: $ (500,000) Interest Charges through June 30,2014: $ 294,759 Balance Due as of June 30,2014: $ 370,782 CONSOLIDATED LOAN TERMS Current Pooled Investment Earning Rate: 0.22% Annual Repayment Amount: $ 371,190 Repayment Term(Years) 1 Total Interest Charges: $ 408 Grand Total Interest Charges: $ 295,167 Cumulative Fiscal Year Principal Interest Annual Total Interest Ending Balance FY2015 $ 370,782 $ 408 $ 371,190 408 $ Total $ 370,782 $ 408 $ 371,190 $ 408 $ 2015-02-17 Agenda Packet Page 138 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AFFIRMING AND CONSOLIDATING EXISTING INTERFUND LOANS FROM THE SEWER FACILITIES REPLACEMENT FUND TO THE STORM DRAIN REVENUE FUND WITH A PRINCIPAL AMOUNT OF $640,000 AND APPROVING A CONSOLIDATED INTERFUND LOAN REPAYMENT SCHEDULE REFLECTING FINANCING COSTS AND REPAYMENTS TO DATE WHEREAS, the Sewer Facilities Replacement fund previously loaned $640,000 to the Storm Drain Revenue fund to finance capital improvements via City Council approved interfund loans; and WHEREAS, in compliance with the proposed Interfund Loan Policy under consideration by the City Council on this same date, staff recommends consolidating all interfund borrowings between these two funds, reflecting all payments through June 30, 2014 and recalculating interest charges through the same date using the City's actual pooled investment earnings; and WHEREAS, the balance due as of June 30, 2014 after accounting for all payments and interest charges totals $626,492; and WHEREAS, a consolidated interfund loan repayment schedule reflecting a 3-year repayment term and the City's current pooled investment earning rate has been prepared and is set forth in Exhibit 1, attached hereto and incorporated herein by reference as if set forth in full; and WHEREAS, future financing costs incurred as a result of this borrowing will vary based on the City's actual pooled investment earnings and the availability of funds to repay the debt. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby affirm and consolidate existing interfund loans from the Sewer Facilities Replacement fund to the Storm Drain Revenue fund with a principal amount of $640,000. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it does hereby approve a consolidated interfund loan repayment schedule reflecting financing costs and repayments to date as presented and as reflected in Exhibit I to this Resolution, subject to administrative adjustment, as may be directed by the Director of Finance/Treasurer, based on actual pooled investment earning rates and availability of funds to repay the debt. 2015-02-17 Agenda Packet Page 139 Presented by Approved as to form by Maria Kachadoorian Glen R. Googins Deputy City Manager City Attorney 2015-02-17 Agenda Packet Page 140 EXHIBIT 1 CONSOLIDATED INTERFUND LOAN AMORTIZATION SCHEDULE , f/ Loan from Fund: Sewer Facility Replacement(Fund 428) ` Loan to Fund: Storm Drain Revenue(Fund 301) CITY OF CHULA VISTA LOAN CONSOLIDATION SUMMARY Original Principal: $ 640,000 Payments through June 30,2014: $ (188,270) Interest Charges through June 30,2014: $ 174,762 Balance Due as of June 30,2014: $ 626,492 CONSOLIDATED LOAN TERMS Current Pooled Investment Earning Rate: 0.22% Annual Repayment Amount: $ 210,000 Repayment Term(Years) 3 Total Interest Charges: $ 2,358 Grand Total Interest Charges: $ 177,120 Cumulative Fiscal Year Principal Interest Annual Total Interest Ending Balance Extra Payment $ 90,519 $ - $ 90,519 $ 535,973 FY2015 $ 210,000 $ 1,378 $ 211,378 $ 1,378 $ 325,973 FY2016 $ 210,000 $ 720 $ 210,720 $ 2,098 $ 118,071 FY2017 $ 118,331 $ 260 $ 118,591 $ 2,358 $ - Total $ 628,850 $ 2,358 $ 631,208 $ 2,358 $ 2015-02-17 Agenda Packet Page 141 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AFFIRMING THE EXISTING INTERFUND LOAN FROM THE GENERAL FUND TO THE CIVIC CENTER COMPONENT OF THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE FUND WITH A PRINCIPAL AMOUNT OF $1,528,969 AND APPROVING AN INTERFUND LOAN REPAYMENT SCHEDULE REFLECTING FINANCING COSTS AND REPAYMENTS TO DATE WHEREAS, the General Fund previously loaned $1,528,969 to the Civic Center component of the Public Facilities Development Impact Fee (PFDIF) fund to finance capital improvements via a City Council approved interfund loan; and WHEREAS, in compliance with the proposed Interfund Loan Policy under consideration by the City Council on this same date, staff recommends revising the interfund borrowing between these two funds, reflecting all payments through June 30, 2014 and recalculating interest charges through the same date using the City's actual pooled investment earnings; and WHEREAS, the balance due as of June 30, 2014 after accounting for all payments and interest charges totals $1,486,012; and WHEREAS, an interfund loan repayment schedule reflecting a 5-year repayment term and the City's current pooled investment earning rate has been prepared and is set forth in Exhibit 1, attached hereto and incorporated herein by reference as if set forth in full; and WHEREAS, future financing costs incurred as a result of this borrowing will vary based on the City's actual pooled investment earnings and the availability of funds to repay the debt. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby affirm the existing interfund loan from the General Fund to the Civic Center component of the PFDIF fund with a principal amount of$1,528,969. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it does hereby approve an interfund loan repayment schedule reflecting financing costs and repayments to date as presented and as reflected in Exhibit I to this Resolution, subject to administrative adjustment, as may be directed by the Director of Finance/Treasure based on actual pooled investment earning rates and availability of funds to repay the debt. 2015-02-17 Agenda Packet Page 142 Presented by Approved as to form by Maria Kachadoorian Glen R. Googins Deputy City Manager City Attorney 2015-02-17 Agenda Packet Page 143 EXHIBIT 1 CONSOLIDATED INTERFUND LOAN AMORTIZATION SCHEDULE , f/ Loan from Fund: General Fund (Fund 100) ` Loan to Fund: PFDIF-Civic Center(Fund 572) CITY OF CHULA VISTA LOAN CONSOLIDATION SUMMARY Original Principal: $ 1,528,969 Payments through June 30,2014: $ (94,302) Interest Charges through June 30,2014: $ 51,345 Balance Due as of June 30,2014: $ 1,486,012 CONSOLIDATED LOAN TERMS Current Pooled Investment Earning Rate: 0.22% Annual Repayment Amount: $ 300,000 Repayment Term(Years) 5 Total Interest Charges: $ 9,804 Grand Total Interest Charges: $ 61,149 Cumulative Fiscal Year Principal Interest Annual Total Interest Ending Balance FY2015 $ 296,731 $ 3,269 $ 300,000 $ 3,269 $ 1,189,281 FY2016 $ 297,384 $ 2,616 $ 300,000 $ 5,886 $ 891,898 FY2017 $ 298,038 $ 1,962 $ 300,000 $ 7,848 $ 593,860 FY2018 $ 298,694 $ 1,306 $ 300,000 $ 9,154 $ 295,167 FY2019 $ 295,167 $ 649 $ 295,816 $ 9,804 $ - Total $ 1,486,012 $ 9,804 $ 1,495,816 $ 9,804 $ 2015-02-17 Agenda Packet Page 144 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AFFIRMING AND CONSOLIDATING THE EXISTING INTERFUND LOANS FROM THE TRANSPORTATION DEVELOPMENT IMPACT FEE FUND TO THE FIRE SUPPRESSION SYSTEM EXPANSION COMPONENT OF THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE FUND WITH A PRINCIPAL AMOUNT OF $10.5 MILLION AND APPROVING A CONSOLIDATED INTERFUND LOAN REPAYMENT SCHEDULE REFLECTING FINANCING COSTS AND REPAYMENTS TO DATE WHEREAS, the Transportation Development Impact Fee (TDIF) fund previously loaned $10.5 million to the Public Facilities Development Impact Fee (PFDIF) fund to finance capital improvements via City Council approved interfund loans; and WHEREAS, the original actions approving interfund loans from the TDIF fund to the PFDIF fund did not identify the specific component of the PFDIF program borrowing funds; and WHEREAS, pursuant to §3.50.110(B) of the Chula Vista Municipal Code, the PFDIF has a single fund for financial reporting purposes; and WHEREAS, for fee calculation and administration purposes, each component of the PFDIF is budgeted and accounted for as a separate fund; and WHEREAS, a negative cash balance in the Fire Suppression System Expansion component of the PFDIF generated the need for the $10.5 million in interfund loans; and WHEREAS, it is therefore appropriate to record these interfund loans as borrowings by the Fire Suppression System Expansion component of the PFDIF; and WHEREAS, in compliance with the proposed Interfund Loan Policy under consideration by the City Council on this same date, staff recommends consolidating all interfund borrowings between these two funds, reflecting all payments through June 30, 2014 and recalculating interest charges through the same date using the City's actual pooled investment earnings; and WHEREAS, the balance due as of June 30, 2014 after accounting for all payments and interest charges totals $10,312,087; and WHEREAS, a consolidated interfund loan repayment schedule reflecting a 10-year repayment term and the City's current pooled investment earning rate has been prepared and is set forth in Exhibit 1, attached hereto and incorporated herein by reference as if set forth in full; and 2015-02-17 Agenda Packet Page 145 WHEREAS, future financing costs incurred as a result of this borrowing will vary based on the City's actual pooled investment earnings and the availability of funds to repay the debt. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby affirm and consolidate existing interfund loans from the TDIF fund to the Fire Suppression System Expansion component of the PFDIF fund with a principal amount of$10.5 million. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it does hereby approve a consolidated interfund loan repayment schedule reflecting financing costs and repayments to date as presented and as reflected in Exhibit 1 to this Resolution, subject to administrative adjustment based on actual pooled investment earning rates and availability of funds to repay the debt. Presented by Approved as to form by Maria Kachadoorian Glen R. Googins Deputy City Manager City Attorney 2015-02-17 Agenda Packet Page 146 EXHIBIT 1 CONSOLIDATED INTERFUND LOAN AMORTIZATION SCHEDULE S f/ Loan from Fund: Eastern TDIF(Fund 591) ` Loan to Fund: PFDIF-Fire Suppression(Fund 576) CITY OF CHULA VISTA LOAN CONSOLIDATION SUMMARY Original Principal: $ 10,500,000 Payments through June 30,2014: $ (430,928) Interest Charges through June 30,2014: $ 243,015 Balance Due as of June 30,2014: $ 10,312,087 CONSOLIDATED LOAN TERMS Current Pooled Investment Earning Rate: 0.22% Annual Repayment Amount: $ 1,045,000 Repayment Term(Years) 10 Total Interest Charges: $ 123,147 Grand Total Interest Charges: $ 366,161 Cumulative Fiscal Year Principal Interest Annual Total Interest Ending Balance Extra Payment $ 95,824 $ - $ 95,824 $ - $ 10,216,263 FY2015 $ 1,022,313 $ 22,687 $ 1,045,000 $ 22,687 $ 9,193,949 FY2016 $ 1,024,773 $ 20,227 $ 1,045,000 $ 42,913 $ 8,169,176 FY2017 $ 1,027,028 $ 17,972 $ 1,045,000 $ 60,885 $ 7,142,148 FY2018 $ 1,029,287 $ 15,713 $ 1,045,000 $ 76,598 $ 6,112,861 FY2019 $ 1,031,552 $ 13,448 $ 1,045,000 $ 90,046 $ 5,081,309 FY2020 $ 1,033,821 $ 11,179 $ 1,045,000 $ 101,225 $ 4,047,488 FY2021 $ 1,036,096 $ 8,904 $ 1,045,000 $ 110,130 $ 3,011,393 FY2022 $ 1,038,375 $ 6,625 $ 1,045,000 $ 116,755 $ 1,973,018 FY2023 $ 1,040,659 $ 4,341 $ 1,045,000 $ 121,096 $ 932,358 FY2024 $ 932,358 $ 2,051 $ 934,409 $ 123,147 $ - Total $ 10,216,263 $ 123,147 $ 10,339,409 $ 123,147 $ 2015-02-17 Agenda Packet Page 147 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AFFIRMING AND CONSOLIDATING THE EXISTING INTERFUND LOANS FROM THE EASTERN PARKLAND ACQUISITION AND DEVELOPMENT FEE FUND TO THE WESTERN PARKLAND ACQUISITION AND DEVELOPMENT FEE FUND WITH A PRINCIPAL AMOUNT OF $9.94 MILLION AND APPROVING A CONSOLIDATED INTERFUND LOAN REPAYMENT SCHEDULE REFLECTING FINANCING COSTS AND REPAYMENTS TO DATE WHEREAS, the Eastern Parkland Acquisition and Development Fee (PAD) fund previously loaned $9.94 million to the Western PAD fund to acquire parkland acreage via City Council approved interfund loans; and WHEREAS, in compliance with the proposed Interfund Loan Policy under consideration by the City Council on this same date, staff recommends consolidating all interfund borrowings between these two funds, reflecting all payments through June 30, 2014 and recalculating interest charges through the same date using the City's actual pooled investment earnings; and WHEREAS, the balance due as of June 30, 2014 after accounting for all payments and interest charges totals $10,078,627; and WHEREAS, a consolidated interfund loan repayment schedule reflecting a 20-year repayment term and the City's current pooled investment earning rate has been prepared and is set forth in Exhibit 1, attached hereto and incorporated herein by reference as if set forth in full; and WHEREAS, future financing costs incurred as a result of this borrowing will vary based on the City's actual pooled investment earnings and the availability of funds to repay the debt. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby affirm and consolidate existing interfund loans from the Eastern PAD fund to the Western PAD fund with a principal amount of$9.94 million. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it does hereby approve a consolidated interfund loan repayment schedule reflecting financing costs and repayments to date as reflected in Exhibit I to this Resolution, subject to administrative adjustment based on actual pooled investment earning rates and availability of funds to repay the debt. 2015-02-17 Agenda Packet Page 148 Presented by Approved as to form by Maria Kachadoorian Glen R. Googins Deputy City Manager City Attorney 2015-02-17 Agenda Packet Page 149 EXHIBIT 1 CONSOLIDATED INTERFUND LOAN AMORTIZATION SCHEDULE S f/ Loan from Fund: Eastern PAD(Fund 715) ` Loan to Fund: Western PAD(Fund 716) CITY OF CHULA VISTA LOAN CONSOLIDATION SUMMARY Original Principal: $ 9,940,000 Payments through June 30,2014: $ - Interest Charges through June 30,2014: $ 138,627 Balance Due as of June 30,2014: $ 10,078,627 CONSOLIDATED LOAN TERMS Current Pooled Investment Earning Rate: 0.22% Annual Repayment Amount: $ 515,000 Repayment Term(Years) 20 Total Interest Charges: $ 234,713 Grand Total Interest Charges: $ 373,340 Cumulative Fiscal Year Principal Interest Annual Total Interest Ending Balance FY2015 $ 492,827 $ 22,173 $ 515,000 $ 22,173 $ 9,585,800 FY2016 $ 493,911 $ 21,089 $ 515,000 $ 43,262 $ 9,091,888 FY2017 $ 494,998 $ 20,002 $ 515,000 $ 63,264 $ 8,596,890 FY2018 $ 496,087 $ 18,913 $ 515,000 $ 82,177 $ 8,100,804 FY2019 $ 497,178 $ 17,822 $ 515,000 $ 99,999 $ 7,603,625 FY2020 $ 498,272 $ 16,728 $ 515,000 $ 116,727 $ 7,105,353 FY2021 $ 499,368 $ 15,632 $ 515,000 $ 132,359 $ 6,605,985 FY2022 $ 500,467 $ 14,533 $ 515,000 $ 146,892 $ 6,105,518 FY2023 $ 501,568 $ 13,432 $ 515,000 $ 160,324 $ 5,603,950 FY2024 $ 502,671 $ 12,329 $ 515,000 $ 172,653 $ 5,101,279 FY2025 $ 503,777 $ 11,223 $ 515,000 $ 183,875 $ 4,597,502 FY2026 $ 504,886 $ 10,115 $ 515,000 $ 193,990 $ 4,092,616 FY2027 $ 505,996 $ 9,004 $ 515,000 $ 202,994 $ 3,586,620 FY2028 $ 507,109 $ 7,891 $ 515,000 $ 210,884 $ 3,079,511 FY2029 $ 508,225 $ 6,775 $ 515,000 $ 217,659 $ 2,571,286 FY2030 $ 509,343 $ 5,657 $ 515,000 $ 223,316 $ 2,061,943 FY2031 $ 510,464 $ 4,536 $ 515,000 $ 227,852 $ 1,551,479 FY2032 $ 511,587 $ 3,413 $ 515,000 $ 231,265 $ 1,039,892 FY2033 $ 512,712 $ 2,288 $ 515,000 $ 233,553 $ 527,180 FY2034 $ 527,180 $ 1,160 $ 528,340 $ 234,713 $ - Total $ 10,078,627 $ 234,713 $ 10,313,340 $ 234,713 $ 2015-02-17 Agenda Packet Page 150 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING VARIOUS AMENDMENTS TO THE FISCAL YEAR 2014-15 BUDGET TO REFLECT INTERFUND LOAN REPAYMENTS AND APPROPRIATING FUNDS THEREFOR(4/5 VOTE REQUIRED) WHEREAS, the Trunk Sewer Capital Reserve fund previously loaned $20,667,477 to the Salt Creek Trunk Sewer Development Impact Fee (DIF) fund to finance capital improvements through a combination of City Council approved interfund loans and direct project expenditures; and WHEREAS, the balance due as of June 30, 2014 after accounting for all payments and interest charges between the Trunk Sewer Capital Reserve fund and the Salt Creek Trunk Sewer DIF fund totals $24,065,057; and WHEREAS, a loan repayment to the Trunk Sewer Capital Reserve Fund in the amount of $250,000 was appropriated from the Salt Creek Trunk Sewer DIF fund with the adoption of the City's fiscal year 2014-15 budget; and WHEREAS, sufficient cash is available in the Salt Creek Trunk Sewer DIF fund to appropriate an additional $3,250,000, increasing the total fiscal year 2014-15 appropriation for interfund loan repayment purposes to $3,500,000; and WHEREAS, the Transportation Development Impact Fee (TDIF) fund previously loaned $180,000 to the Western Transportation Development Impact Fee (WTDIF) fund to finance capital improvements and the establishment of the WTDIF program; and WHEREAS, loan repayments from the WTDIF fund to the TDIF fund total $189,745, reflecting interest charges of$9,745; and WHEREAS, the financing costs incurred by the WTDIF fund have been revised to reflect only the City's actual pooled investment earning rate, totaling $3,301; and WHEREAS, it is appropriate to refund the WTDIF fund for interest charges in excess of the City's actual pooled investment earning rate, totaling $6,444; and WHEREAS, pursuant to §3.50.110(B) of the Chula Vista Municipal Code, the PFDIF has a single fund for financial reporting purposes; and WHEREAS, for fee calculation and administration purposes, each component of the PFDIF is budgeted and accounted for as a separate fund; and 2015-02-17 Agenda Packet Page 151 WHEREAS, the TDIF fund previously loaned $5.2 million to the Public Facilities Development Impact Fee (PFDIF) fund to finance capital improvements via City Council Resolution No. 2008-300; and WHEREAS, Resolution No. 2008-300 did not identify the specific component of the PFDIF program borrowing the $5.2 million and the loan was recorded against the Administration component of the PFDIF fund; and WHEREAS, a negative cash balance in the Fire Suppression System Expansion component of the PFDIF fund generated the need for the $5.2 million interfund loan from the TDIF fund; and WHEREAS, by approval of Resolution F of this same item, the City Council confirmed the obligation of the Fire Suppression System Expansion component of the PFDIF fund to repay the $5.2 million interfund loan from the TDIF fund; and WHEREAS, it is appropriate to transfer interest earnings generated by the $5.2 million interfund loan from the Administration component of the PFDIF to the Fire Suppression System Expansion component, totaling $140,388 as of June 30, 2014; and WHEREAS, a loan repayment to the TDIF fund in the amount of $709,896 was appropriated from the Administration component of the PFDIF fund with the adoption of the City's fiscal year 2014-15 budget; and WHEREAS, it is therefore necessary to amend the City's fiscal year 2014-15 budget to replace repayment from the Administration component of the PFDIF fund with repayment from the Fire Suppression System Expansion component. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby amend the fiscal year 2014-15 budget and approves the following appropriations: Fund Transfers Out Fund Transfers in Salt Creek Trunk Sewer $ 3,250,000 Trunk Sewer Capital Reserve $ 3,250,000 TDIF $ 6,444 WTDIF $ 6,444 PFDIF Admin $ 140,338 PFDIF Fire $ 140,338 PFDIF Admin $ (709,896) LT Adv DSF City $ (709,896) PFDIF Fire $ 709,896 LT Adv DSF City $ 709,896 Total Transfers Out $ 3,396,782 Total Transfers In $ 3,396,782 Presented by Approved as to form by Maria Kachadoorian Glen R. Googins Deputy City Manager City Attorney 2015-02-17 Agenda Packet Page 152 City of Chula Vista CTY CHUILAVISTA Staff Report File#: 15-0001, Item#: 7. ACCEPTANCE OF AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30, 2014 RECOMMENDED ACTION Council accept the report. SUMMARY Presented for City Council information and acceptance are the Audited Financial Statements for the fiscal year ended June 30, 2014, as prepared by the independent audit firm of Lance Soll & Lunghard LLP. The audit report submitted for the City has received an unqualified (clean) opinion from the independent audit firm. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the requested action is not a "Project" as defined under Section 15378(b)(4) of the State CEQA Guidelines because it is only the consideration and acceptance of the audited financial statements for the fiscal year that ended June 30, 2014; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines no environmental review is necessary. BOARD/COMMISSION RECOMMENDATION Not applicable. DISCUSSION Pursuant to the City Charter Section 1017, an annual audit is performed of the City's financial records by an independent accounting firm. The report is included as an attachment. The firm of Lance Soll & Lunghard LLP has examined the general purpose financial statements of the City of Chula Vista and has issued their opinion that those statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2014 and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. The unassigned fund balance for the City's General Fund totaled $14.3 million as of June 30, 2014. This amount reflects 10.4% in unassigned fund balance (operating reserves) of fiscal year 2013-14 actual expenditures of $138.4 million. The unassigned fund balance increased from $10.8 million to $14.3 million when compared to June 30, 2013, representing an increase of$3.5 million. In addition to the unassigned fund balance, the General Fund ended fiscal year 2013-14 with $3.6 million in the Economic Contingency Reserve. This reserve was established by the City Council in City of Chula Vista Page 1 of 2 Printed on 2/12/2015 2015-02-17 Agenda Packet powered by Le9age 153 File#: 15-0001, Item#: 7. fiscal year 2009 with the approval of the updated General Fund Reserve Policy. The Economic Contingency Reserve has been funded through one-time revenues and/or expenditure savings. The reserve policy sets a reserve goal of 5% for the Economic Contingency Reserve. The General Fund ended fiscal year 2013-14 with approximately 2.6% of the 2013-14 fiscal year budget ($138.4 million) in the Economic Contingency Reserve. In order to form a basis for their opinion, Lance Soll & Lunghard LLP, evaluated the internal control procedures of the City and found no reportable conditions. This was Lance Soll & Lunghard LLP first year serving as the City's independent auditors. The City previously contracted with Pun & McGeady, LLC. After five years of contracting with this firm the City decided to issue an RFP earlier this fiscal year and awarded the contract to Lance Soll & Lunghard LLP. The City's Consolidated Annual Financial Report (CAFR), is provided as Attachment 1 of this report. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500-foot rule found in California Code of Regulations section 18705.2 (a)(11), is not applicable to this decision. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This action supports the Operational Excellence goal by communicating the City's financial position for the fiscal year ending June 30, 2014 in an open and transparent manner. This transparency supports City Initiative 1 .3.1 . - "Foster public trust through an open and ethical government." CURRENT YEAR FISCAL IMPACT There is no fiscal impact as a result of this action. ONGOING FISCAL IMPACT There is no ongoing fiscal impact as result of this action. ATTACHMENTS 1 . Fiscal Year 2013-14 Comprehensive Annual Financial Report Staff Contact: Phillip Davis, Assistant Director, Finance Department City of Chula Vista Page 2 of 2 Printed on 2/12/2015 2015-02-17 Agenda Packet powered by Le9age 154 F �S Tji1RD AVENU� � ® l o Comprehensive Annual Financial Report for the year ended June 30, 2014 CITY OF CHULA VISTA - Y �, �11111111��� `~ C a l i f o r n i a ;mp"FW CITY OF CHULAVISTA 2015-02-17 Agenda Packet Page 156 ,4�mf/ C1W OF CHULA VISTA State of California Comprehensive Annual Financial Report For The Fiscal Year Ended June 30, 2014 Mayor Cheryl Cox City Council Patricia Aguilar Pamela Bensoussan Compiled under the direction of Rudy Ramirez Mary salas Maria Kachadoorian Director of Finance/Treasurer City Manager Gary Halbert 2015-02-17 Agenda Packet Page 157 ;mp"FW CITY OF CHULAVISTA 2015-02-17 Agenda Packet Page 158 CITY OF CHULA VISTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30,2014 TABLE OF CONTENTS Page INTRODUCTORY SECTION(unaudited) Letterof Transmittal.............................................................................................................................................i PrincipalOfficials................................................................................................................................................v OrganizationalChart............................................................................................................................................vi Certificate of Achievement for Excellence in Financial Reporting....................................................................vii FINANCIAL SECTION IndependentAuditors'Report.........................................................................................................................1 Independent Auditors'Report on Internal Control Over Financial Reporting And on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.....................................5 Management's Discussion and Analysis(Required Supplementary Information)......................................7 Basic Financial Statements: Government-Wide Financial Statements: Statementof Net Position............................................................................................................................29 Statement of Activities and Changes in Net Position..................................................................................30 Fund Financial Statements: Governmental Fund Financial Statements: BalanceSheet.......................................................................................................................................36 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position....................................................................................................39 Statement of Revenues,Expenditures and Changes in Fund Balances........................................................................................................................................40 Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balances of Governmental Funds to the Statementof Activities..................................................................................................................42 Proprietary Fund Financial Statements: Statementof Net Position.....................................................................................................................44 Statement of Revenues,Expenses and Changes in Fund Net Position..........................................................................................................................................45 Statementof Cash Flows .....................................................................................................................46 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position.....................................................................................................48 Statement of Changes in Fiduciary Net Position..................................................................................49 Notes to Basic Financial Statements............................................................................................................51 2015-02-17 Agenda Packet Page 159 CITY OF CHULA VISTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30,2014 TABLE OF CONTENTS(CONTINUED) Page Number FINANCIAL SECTION(Continued) Required Supplementary Information: Budgetary Comparison Schedule by Department-General Fund.............................................................. 109 Budgetary Comparison Schedule—Sundry Grants Special Revenue Fund................................................ 110 Budgetary Comparison Schedule-Housing Successor Agency Special Revenue Fund............................ 111 Scheduleof Funding Progress.................................................................................................................... 112 Notes to Required Supplementary Information..................................................................................................113 Supplementary Information: Non-Major Governmental Funds: CombiningBalance Sheet ......................................................................................................................... 120 Combining Statement of Revenues,Expenditures and Changes inFund Balances........................................................................................................................................ 126 Statement of Revenues,Expenditures and Changes in Fund Balances—Budget and Actual: Transportation Grants Special Revenue Fund..................................................................................... 131 Parking Meter Special Revenue Fund.................................................................................................132 Traffic Safety Special Revenue Fund..................................................................................................133 Traffic Signal Special Revenue Fund..................................................................................................134 Stone Drain Special Revenue Fund....................................................................................................135 Town Center I Special Revenue Fund.................................................................................................136 Open Space District's Special Revenue Fund.....................................................................................137 Housing Programs Special Revenue Fund..........................................................................................138 Housing Authority Special Revenue Fund..........................................................................................139 Transportation Sales Tax Special Revenue Fund................................................................................140 Mobile Park Fee Special Revenue Fund..............................................................................................141 Public Education and Government Fee Special Revenue Fund..........................................................142 Utility Tax Settlement Special Revenue Fund....................................................................................143 Park Acquisition Development Capital Project Fund..........................................................................144 Residential Construction tax Capital Project Fund..............................................................................145 Highway Safety Capital Project Fund.................................................................................................146 Assessment District Improvement Capital Project Fund.....................................................................147 Development Impact Capital Project Fund.........................................................................................148 Other Transportation Program Capital Project Fund...........................................................................149 Notes Payable Debt Service Fund.......................................................................................................150 Leases Payable Debt Service Fund......................................................................................................151 CityDebt Service Fund.......................................................................................................................152 Public Financing Authority Debt Service Fund..................................................................................153 Non-Major Proprietary Funds: Combining Statement of Net Position........................................................................................................ 156 Combining Statement of Activities and Changes in Net Position..............................................................157 Combining Statement of Cash Flows.........................................................................................................158 Internal Service Funds: Combining Statement of Net Position........................................................................................................ 160 Combining Statement of Activities and Changes in Net Position..............................................................161 Combining Statement of Cash Flows.........................................................................................................162 2015-02-17 Agenda Packet Page 160 CITY OF CHULA VISTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30,2014 TABLE OF CONTENTS(CONTINUED) FINANCIAL SECTION(Continued) Fiduciary Funds: Combining Statement of Net Position—All Agency Funds....................................................................... 164 Combining Statement of Changes in Assets and Liabilities—All Agency Funds...................................... 165 STATISTICAL SECTION Net Position by Component-Last Ten Fiscal Years..................................................................................168 Changes in Net Position-Last Ten Fiscal Years.......................................................................................169 Fund Balances,Governmental Funds—Last Ten Fiscal Years..................................................................171 Changes in Fund Balances,Governmental Funds—Last Ten Years..........................................................172 Assessed Value and Estimated Actual Value of Taxable Property -Last Ten Fiscal Years.............................................................................................................173 Direct and Overlapping Property Tax Rates-Last Ten Fiscal Years.........................................................174 Principal Property Tax Payers-Current Year and Ten Years Ago............................................................175 Property Tax Levies and Collections-Last Ten Fiscal Years....................................................................176 Ratios of Outstanding Debt by Type-Last Ten Fiscal Years....................................................................177 Ratios of General Bonded Debt Outstanding-Last Ten Fiscal Years.......................................................178 Statement of Direct and Over Lapping Bonded Debt.................................................................................179 Legal Debt Margin Information-Last Ten Fiscal Years...........................................................................180 Pledged-Revenue Coverage-Last Ten Fiscal Years..................................................................................181 Demographic and Economic Statistics-Last Ten Calendar Years............................................................182 Principal Employers-Current Year and Ten Years Ago...........................................................................183 Full-time-Equivalent City Government Employees by Function/Program-Last Ten Fiscal years.........................................................................................184 Operating Indicators by Function/Program-Last Ten Fiscal Years..........................................................185 Capital Asset Statistics by Function/Program-Last Ten Fiscal Years......................................................186 2015-02-17 Agenda Packet Page 161 ;mp"FW CITY OF CHULAVISTA 2015-02-17 Agenda Packet Page 162 Ali OF CHU�LAVISTA Finance Department January 16, 2015 Honorable Mayor, Councilmembers and Citizens of Chula Vista Chula Vista City Hall Chula Vista, CA 91910 The audited Comprehensive Annual Financial Report (CAFR) of the City of Chula Vista for the fiscal year ended June 30, 2014 is hereby submitted to you. The City compiles and prepares the annual financial report to provide interested parties with reliable information concerning the financial condition and results of operations for the City. The basic financial statements are audited by an independent certified public accounting firm. The purpose of the audit is to ensure that the financial statements present fairly, in all material respects, the financial position and the results of operations of the City. Responsibility for both the accuracy of the information and the completeness and fairness of the presentation, including all disclosures, rests with City management. The financial statements have been prepared in accordance with generally accepted accounting principles. This means that the statements have been prepared using guidelines that would allow the user to make a meaningful comparison to the financial statements of other similar entities. All disclosures necessary to enable the reader to gain an understanding of the City of Chula Vista's activities have been included. Generally accepted accounting principles require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Chula Vista's MD&A can be found immediately following the report of the independent auditors. The City of Chula Vista is required to undergo an annual single audit in conformity with the provisions of the Revised Single Audit Act of 1996 and the United States Office of Management and Budgets Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Information related to this single audit, including a schedule of expenditures of federal awards, along with the independent auditors' reports on internal controls and compliance with applicable laws, can be found in a separately issued single audit report. The Comprehensive Annual Financial Report for the City of Chula Vista includes the activities of the primary government (City of Chula Vista) along with several "component units." A component unit is a legally separate organization or entity for which the elected officials of the primary government are financially accountable. Component units, although they are legally separate entities, are in substance part of the primary government's operations and therefore i 19$ *#l4?i R+~,ghula Vista, CA 91910 I www.chulavistaca.gov I (619) 691-5250 I fax (619) 5V3g670 i included for financial reporting purposes. The component units included within the City of Chula Vista's financial statements are the Chula Vista Public Financing Authority, Chula Vista Municipal Financing Authority, Chula Vista Industrial Development Authority and Chula Vista Housing Authority. I Profile of the Government The City of Chula Vista is located in San Diego County with its western border adjacent to San Diego Bay, 8 miles south of Downtown San Diego and 7 miles north of the Mexican border. The City encompasses 50 square miles. Chula Vista was incorporated in 1911, and functions under a City Charter with a Council/Manager form of government. The City is governed by a four member Council and a Mayor, who serve four-year overlapping terms, and in addition to the City Attorney are elected on a citywide basis. The City Council appoints the City Manager and the City Clerk. Municipal services provided include police, fire, parks, recreation, libraries, planning & building, housing programs, street and drainage construction and maintenance and sewer services. Local Economy and Prospects for the Future Chula Vista residents idents enjoy a ll the benefits of a major city along with small town friendliness affordable housing and near perfect weather. The most recent data available from the San Diego Association of Governments (SANDAL) estimates that the median income in Chula Vista is $71,355. The City of Chula Vista, with a population of approximately 256,139, is the second largest community in San Diego County. SANDAG projects that the City of Chula Vista will reach a population of approximately 330,381 by the year 2050. SANDAG's 2050 Growth Forecast indicates that the South County sub region will continue to host a substantial amount of the region's projected growth over the next 35 years, primarily through new development in the eastern portion of the City. Long-Term Financial Planning: The City periodically updates a 5-Year General Fund Financial Forecast. The purpose of this plan is to analyze current revenue sources to determine if relevant assumptions need to be updated when projecting potential revenue growth over time. Operational expenditures are also examined to estimate cost increases over time due to inflation, increased service demands, and other factors. The goal of the 5-year financial forecast is to match the availability of revenues to service demands over time, and make adjustments to budgetary and financial plans accordingly. During fiscal year 2014, the Finance Department updated the General Fund 5-Year Financial Forecast to assess the General Fund's ability over the next five years to continue current service levels based on current staffing and service levels. The forecast anticipated minimal revenue growth for the next five years and identified a structural imbalance beginning in fiscal year 2016, primarily due to increases in the City's Ca1PERS rates. The Finance Department will continue to ii 2015-02-17 Agenda Packet Page 164 i i � I update the five-year forecast, as projections are refined. This forecast will serve as the foundation for the City's Long Term Financial Plan, which is in the process of being developed. 1 The Government Finance Officers Association (GFOA) recognizes the importance of combining the forecasting of revenues and expenditures into a single financial forecast. The GFOA also recommends that a government should have a financial planning process that assesses long-term financial implications of current and proposed policies, programs, and assumptions that develop appropriate strategies to achieve its goals. Internal Control The City has developed and put into place systems of internal controls over various accounting and transaction processing functions. Management of the City is responsible for establishing and maintaining the internal control structure. This structure is designed to ensure that the assets of the City are protected from loss, theft, or misuse. These controls are also in place to ensure that adequate accounting information is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The idea of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of cost and benefits requires estimates and judgments by management. Budgetary Controls The City currently adopts a single-year operating and ca p ital budget. The provisions of these budgets are directly posted into the City's general ledger accounting system to help ensure compliance with the appropriations made by the City Council. Activities of the general fund, special revenue funds, debt service funds and capital project funds are adopted in the operating budget. Budgetary control (which is the policy that actual expenditures may not exceed appropriations) is at the expenditure category level within each fund. Any budget modification which would result in an appropriation increase requires City Council approval. The City Manager and Finance Director are jointly authorized to transfer appropriations up to $15,000 within a departmental budget. Any appropriation transfers between departments or greater than $15,000 require City Council approval. Amounts appropriated for each year in the operating budget lapse at the end of each fiscal year, unless carried forward through the encumbrance process. The City Council also adopts amounts in the operating budget for the proprietary and internal service funds to provide a level of fiscal control. Independent Audit Each year the City has an audit performed by an independent certified public accounting firm. This year the audit was performed by the firm of Lance, Soll and Lunghard, LLP. The auditors also conducted a "single audit" designed to meet the requirements of the federal Revised Single Audit Act of 1996 and the related U.S. Office of Management and Budget's Circular A-133. The auditor's report on the basic financial statements can be found in the financial section of this report. 2015-02-17 Agenda Packet Page 165 The auditor's report on internal controls and compliance with applicable laws and regulations can be found in a separately issued single audit report. j Awards The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Chula j Vista for its Comprehensive Annual Financial Report for the year ended June 30, 2013. This '< was the 14'h consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Comprehensive Annual Financial Report. This report must satisfy both it generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program's requirements, and we are again submitting it to GFOA to determine its eligibility for another certificate. Acknowledgments The preparation of this Comprehensive Annual Financial Report could not have been accomplished without the efficient and dedicated services of the entire finance staff throughout the fiscal year. We would like to thank all of those individuals who assisted and contributed to the preparation of this report. Acknowledgement must also be given to the Mayor and City Council, along with the City Manager, for their continued interest in planning and conducting the operations of the City of Chula Vista in a responsible and progressive manner. I Respectfully submitted, Maria achadoorian Deputy City Manager and Chief Financial Officer I iv 2015-02-17 Agenda Packet Page 166 City of Chula Vista List of City Officials As of June 30, 2014 City Council Cheryl Cox Mayor Patricia Aguilar Deputy Mayor Pamela Bensoussan Councilmember Rudy Ramirez Councilmember Mary Casillas Salas Councilmember Administration Gary Halbert City Manager Kelley Bacon Deputy City Manager/Director of Human Resources Glen R. Googins City Attorney Donna Norris City Clerk Department Heads David Bejarano Chief of Police Kelly Broughton Director of Development Services Dave Hanneman Fire Chief Richard Hopkins Director of Public Works Maria Kachadoorian Director of Finance/Treasurer Kristi McClure Director of Recreation Betty Waznis Director of Library Michael Meacham Director of Economic Development V 2015-02-17 Agenda Packet Page 167 CITY OF CHU A VISTA ORGANIZATION CHART CITIZENS OF CHULA VISTA Citizen Advisory Mayor Citizen Advisory Commissions City Council Boards City Manag City Attorney City Clerk Deputy City Assistant City Manager Manager Police Human Resources Library Public Works Fire Information& Recreation Development Technology Svcs Services Administration ' Animal:Care Housing Faciy Authority Successor Agency to the Redevelopment Agency Finance Vi 2015-02-17 Agenda Packet Page 168 Government Finance Officers Association I i i Certificate of Achievement for Excellence in Financial Reporting Presented to City of Chula vista California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2013 Executive Director/CEO Vii 2015-02-17 Agenda Packet Page 169 ;mp"FW CITY OF CHULAVISTA viii 2015-02-17 Agenda Packet Page 170 000 •David E.Hale,CPA,CFP •Deborah A.Harper,CPA 0 0 0 •Donald G.Slater,CPA •Gary A.Cates,CPA LSE 0 0 •Richard K.Kikuchi,CPA •Michael D.Mangold,CPA •Susan F.Matz,CPA •David S.Myers,CPA CERTIFIED PUBLIC ACCOUNTANTS •Bryan S.Gruber,CPA INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of the City Council City of Chula Vista, California Report on Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chula Vista, California, (the City) as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Lance, Sall&Lunghard, LLP 203 North Brea Boulevard Suite 203 Brea, CA 92821 TEL 714.672.0022 Fax 714.672.0331 www.lslcpas.com Orange County Temecula Valley Silicon Valley 2015-02-17 Agenda Packet Page 171 LSE••• CERTIFIED PUBLIC ACCOUNTANTS To the Honorable Mayor and Members of the City Council City of Chula Vista, California Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chula Vista, California, as of June 30, 2014, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Change in Accounting Principle As discussed in Note 1 to the financial statements, in 2014 the City adopted new accounting guidance, GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, and the budgetary comparison information for the General Fund, Sundry Grants Special Revenue Fund and the Housing Successor Agency Special Revenue Fund, as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules, and the statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 2015-02-17 Agenda Packet 2 Page 172 LSE CERTIFIED PUBLIC ACCOUNTANTS To the Honorable Mayor and Members of the City Council City of Chula Vista, California The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 16, 2015, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Brea, California January 16, 2015 2015-02-17 Agenda Packet 3 Page 173 ;mp"FW CITY OF CHULAVISTA 2015-02-17 Agenda Packet 4 Page 174 000 •David E.Hale,CPA,CFP •Deborah A.Harper,CPA 0 0 0 •Donald G.Slater,CPA •Gary A.Cates,CPA LSE 0 0 •Richard K.Kikuchi,CPA •Michael D.Mangold,CPA •Susan F.Matz,CPA •David S.Myers,CPA CERTIFIED PUBLIC ACCOUNTANTS •Bryan S.Gruber,CPA INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council City of Chula Vista, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chula Vista, California, (the City) as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated January 16, 2015. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Lance, Sall&Lunghard, LLP 203 North Brea Boulevard Suite 203 Brea, CA 92821 TEL 714.672.0022 Fax 714.672.0331 www.lslcpas.com Orange County Temecula Valley Silicon Valley 2015-02-17 Agenda Packet Page 175 LSE CERTIFIED PUBLIC ACCOUNTANTS To the Honorable Mayor and Members of the City Council City of Chula Vista, California Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Brea, California January 16, 2015 2015-02-17 Agenda Packet 6 Page 176 CITY OF CHULA VISTA MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the City of Chula Vista, we are presenting the readers of this annual financial report a narrative overview and analysis of the financial activities of the City of Chula Vista for the fiscal year ended June 30, 2014. We encourage the readers of this document to consider the information presented here in conjunction with additional information furnished in the letter of transmittal found in the introductory section of this annual report. FINANCIAL HIGHLIGHTS The following outlines financial highlights for the year: 1. The assets of the City exceeded its liabilities at June 30, 2014 by $1.0 billion (net position). Of this amount, $119.9 million was reported as "unrestricted net position" and may be used to meet the government's ongoing obligations to citizens and creditors. 2. Total unrestricted net position is $89.4 million lower for governmental activities than last fiscal year, a decrease of 80%. For business type activities, unrestricted net position is $4.0 million higher than the previous year, a 4.3% increase. The significant decrease in unrestricted net position for governmental activities reflects an auditor recommended change in the classification of net position for restricted funds from unrestricted to restricted. 3. The City's total net position increased by $24.7 million in fiscal year 2014. The net position of governmental activities increased by $18.9 million, while the net position of the business type activities increased by $5.8 million. 4. The City's governmental funds reported combined ending fund balances of$133.8 million, an increase of$11.6 million, or 9.5%. 5. Total citywide liabilities decreased by $17.3 million. Liabilities for governmental activities decreased by $17.0 million and business-type activities decreased by $0.3 million. 6. The City's total long-term debt obligations had a net decrease of$2.5 million or 1.8% during fiscal year 2014. The decrease reflects principal payments of$6.4 million, offset by a new capital lease for solar energy financing totaling $2.1 million and the refunding of the 2002 Certificates of Participation for the Police Facility project. 7. The unassigned fund balance of the General Fund on June 30, 2014 was $14.5 million, or 11.7% of fiscal year 2013-14 General Fund expenditures (excluding other financing uses). 8. The City recognized $10.5 million in Utility Users' Tax (UUT) revenues deferred during fiscal years 2011, 2012, and 2013 pending the outcome of a legal challenge to the City's collection of UUT on wireless telecommunication services. The class action lawsuit was settled in December 2013, requiring the establishment of an $8 million settlement fund (TUT Common Fund) to be used for rebates and refunds to taxpayers and specified city activities. 2015-02-17 Agenda Packet 7 Page 177 The settlement further required a reduction in the UUT rate for telecommunication services from 5% to 4.75%, effective March 1, 2014. No future deferral of UUT revenues is anticipated. OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains required supplementary information (RSI) as well as other supplemental financial information. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to private-sector business. They are comprised of the Statement of Net Position and Statement of Activities and Changes in Net Position. The Statement of Net Position presents information on all of the City's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. This statement combines and consolidates governmental funds current financial resources with capital assets and long-term obligations. The Statement of Activities and Changes in Net Position presents information showing how the government's net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave). Both of the above financial statements have separate sections for three different types of activities. These three types of activities are: Governmental Activities - The activities in this section are mostly supported by taxes and charges for services. The governmental activities of the City include General Government, Public Safety, Public Works, Parks and Recreation and Library. Business-Type Activities — These functions normally are intended to recover all or a significant portion of their costs through user fees and charges to external users of goods and services. The business-type activities of the City include the Sewer Funds and Transit Operations. 2015-02-17 Agenda Packet 8 Page 178 Discretely Presented Component Units - The City of Chula Vista has no discretely presented component units to report upon. Fund Financial Statements and Major Component Unit Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. The fund financial statements provide detailed information about each of the City's most significant funds, called Major Funds. The concept of Major Funds, and the determination of which are major funds, was established by GASB Statement 34 and replaces the concept of combining like funds and presenting them in total. Instead, each Major Fund is presented individually, with all Non-major Funds summarized and presented in a single column. Governmental Funds — Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financial capacity. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. These reconciliations are presented on the page immediately following each governmental fund financial statement. The City has thirty-five governmental funds, of which six are considered major funds for presentation purposes. Each major fund is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance. Information for the City's remaining governmental funds are combined into a single, aggregated "Other Governmental Funds" column. Individual fund data for each of these non-major governmental funds is provided in the supplementary information portion of the report. Proprietary Funds — The City maintains two different types of proprietary funds - enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses 2015-02-17 Agenda Packet 9 Page 179 an enterprise fund to account for its Sewer, Development Services and Transit activities. Internal service funds are used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for its vehicle fleet, information systems, and workers' compensation program. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the governmental-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. Like the government-wide financial statements, proprietary fund financial statements use the accrual basis of accounting. There is no reconciliation needed between the government-wide financial statements for business-type activities and the proprietary fund financial statements. Fiduciary Funds — Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City's own programs. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Required Supplementary Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information providing a budgetary comparison statement for the general fund and sewer fund. GOVERNMENT-WIDE FINANCIAL ANALYSIS Net Position As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City of Chula Vista, combined net position (government and business type activities) totaled $1.0 billion at the close of the fiscal year ending June 30, 2014. This is a net increase of $24.5 million when compared to the prior year, reflecting a current year increase of$24.7 million offset by a $0.2 million negative restatement of prior year net position. Increases occurred in both the City's governmental funds (net $18.7 million after $0.2 million negative restatement of prior year) and in business-type activities ($5.8 million). On the following page is a summary schedule showing the components that make up the City's net position at June 30, 2014 and 2013. 2015-02-17 Agenda Packet 10 Page 180 City of Chula Vista Net Position Fiscal Year Ending June 30 Governmental Activities Business-Type Activities Total 2014 2013 2014 2013 2014 2013 Current Assets $216,799,550 $ 167,732,385 $ 84,246,862 $ 80,712,296 $301,046,412 $248,444,681 Non-Current Assets (4,919,281) 43,146,245 14,684,187 14,516,516 9,764,906 57,662,761 Capital Assets 769,716,744 769,034,178 136,513,268 134,661,254 906,230,012 903,695,432 Total Assets 981,597,013 979,912,808 235,444,317 229,890,066 1,217,041,330 1,209,802,874 Current Liabilities 39,857,833 45,493,875 1,427,599 1,678,341 41,285,432 47,172,216 Non-Current Liabilities 162,796,464 174,167,681 109,810 148,726 162,906,274 174,316,407 Total Liabilities 202,654,297 219,661,556 1,537,409 1,827,067 204,191,706 221,488,623 Net Position Net Investment in 649,314,016 626,476,481 136,513,268 134,661,254 785,827,284 761,137,735 Capital Assets Restricted 107,106,257 21,888,309 - - 107,106,257 21,888,309 Unrestricted 22,522,443 111,886,462 97,393,640 93,401,745 119,916,083 205,288,207 Total Net Position $778,942,716 $760,251,252 $233,906,908 $228,062,999 $1,012,849,624 $988,314,251 As the table shows, an amount of $785.8 million is reported as invested in capital assets (e.g. land, streets, sewers, buildings, improvements, equipment and work in progress), less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Additional portions of the City's net assets are restricted ($107.1 million or 10.6%) and represent resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets of $119.9 million may be used to meet the government's ongoing obligations to citizens and creditors. Current and non-current assets for government activities reflect an auditor recommended reclassification of deferred loans from non-current to current assets. This change in classification represents $47.4 million of the year-to-year change in these categories. A second auditor recommended reclassification of developer deposits, payable, from non-current to current liabilities represents $13.1 million of the year-to-year change in these categories. At the end of the fiscal year, the City was able to report overall positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. 2015-02-17 Agenda Packet 11 Page 181 Changes in Net Position The statement of net position provides a snapshot at a given point in time of the assets and liabilities of the City. The other citywide statement provided is the Statement of Activities and Changes in Net Position. This statement provides the reader with information regarding the revenues, expenses and changes in net position over the fiscal year. Generally, all changes to the City's net position from one fiscal year to the next flow through the Statement of Activities. City of Chula Vista Summary of Changes in Net Position Fiscal Year Ending June 30 Governmental Activities Business-Type Activities Total 2014 2013 2014 2013 2014 2013 Revenues: Program Revenues: Charges for Services $55,832,132 $59,746,716 $42,469,478 $45,152,163 $98,301,610 $104,898,879 Operating Grants&Contributions 29,456,557 30,935,863 3,800,358 3,095,626 33,256,915 34,031,489 Capital Grants&Contributions 1,921,554 2,936,133 - - 1,921,554 2,936,133 General Revenues: - - Property Taxes 45,266,172 45,146,022 - - 45,266,172 45,146,022 Sales Taxes 29,171,174 28,627,785 - - 29,171,174 28,627,785 Franchise Taxes 9,499,909 9,266,768 - - 9,499,909 9,266,768 Utility User Taxes 17,525,294 4,428,794 - - 17,525,294 4,428,794 Business License Taxes 1,328,554 1,260,622 - - 1,328,554 1,260,622 Transient Occupancy Taxes 2,632,774 2,471,252 - - 2,632,774 2,471,252 Property Transfer Taxes 949,603 1,125,252 - - 949,603 1,125,252 Construction Taxes 209,075 413,552 - - 209,075 413,552 Investment Earnings 1,944,988 866,861 1,505,052 261,354 3,450,040 1,128,215 Miscellaneous 686,054 2,034,895 819,872 340,888 1,505,926 2,375,783 Transfer from Successor Agency - 239,320 - - - 239,320 Gain(Loss)Disposal of Capital Assets - 82,587 25,778 9,021 25,778 91,608 Total Revenues 196,423,840 189,582,422 48,620,538 48,859,052 245,044,378 238,441,474 Expenses: General Government $25,386,867 $33,652,891 - - $25,386,867 $33,652,891 Public Safety 74,896,803 77,821,520 - - 74,896,803 77,821,520 Public Works 63,312,155 69,297,402 - - 63,312,155 69,297,402 Parks and Recreation 6,118,351 5,865,192 - - 6,118,351 5,865,192 Library 4,092,263 4,224,568 - - 4,092,263 4,224,568 Transit - 14,560 - - - 14,560 Interest on Long-Term Debt 7,287,461 6,698,509 - - 7,287,461 6,698,509 Sewer Funds - - 26,046,175 30,773,712 26,046,175 30,773,712 Transit - - 6,875,214 6,997,488 6,875,214 6,997,488 Bayfront Trolley Station - - 61,823 92,843 61,823 92,843 Sewer DIFs - - 129,279 122,927 129,279 122,927 Development Services Fund - - 6,113,133 5,717,312 6,113,133 5,717,312 Total Expenses 181,093,900 197,574,642 39,225,624 43,704,282 220,319,524 241,278,924 Increase/(Decrease)in 15,329,940 (7,992,220) 9,394,914 5,154,770 24,724,854 (2,837,450) Net Position Before Transfers Transfers 3,551,004 3,861,417 (3,551,004) (3,861,417) - - Extraordinary Gain(Loss) - - - - - - Change in Net Position 18,880,944 (4,130,803) 5,843,910 1,293,353 24,724,854 (2,837,450) Net Position,Beginning of Year-Restated 760,061,772 764,382,055 228,062,998 226,769,646 988,124,770 991,151,701 Net Position,End of Year $778,942,716 $760,251,252 $233,906,908$228,062,999$1,012,849,624 $988,314,251 2015-02-17 Agenda Packet 12 Page 182 The City's net position increased by $24.7 million or 2.5%, offset by a $0.2 million negative restatement of prior year net position, for a net change in net position of$24.5 million. The net position of governmental activities increased by $18.9 million (offset by $0.2 million negative restatement of net position), while the net position of the business type activities increased by $5.8 million. Further analysis is provided within the governmental and business-type activity sections below. Governmental Activities Governmental activities increased the City's net position by $18.9 million contributing to the City's total increase in net position. The City received a total of $87.2 million in program revenues from governmental activities in fiscal year 2013-14, a decrease of$6.4 million from the previous year. A comparison of the cost of services by function for the City's governmental activities is shown in the chart below, along with the program revenues used to cover the net expenses of the governmental activities. Expenses and Program Revenues Governmental Activities $80 c 0 � $60 $40 $20 $_ General Public Public Parks and Library Government Safety Works Recreation ■Expenses ■Program Revenues Total program revenues from governmental activities were $87.2 million in fiscal year 2013-14. Per GASB 34, program revenues are derived directly from the program itself or from parties outside the reporting government's taxpayers or citizenry. They reduce the net cost of the function to be financed from the government's general revenues. A discussion of the different Program Revenue categories and its components follows. 2015-02-17 Agenda Packet 13 Page 183 Charges for Services had a net decrease of $3.9 million for governmental activities when compared to the previous year. Changes by service category are summarized in the table below. Charges for Services As of June 30 Increase/ Service Category 2014 2013 (Decrease) General government $ 8,767,069 $ 5,795,838 $ 2,971,231 Public safety 10,198,058 8,893,631 1,304,427 Public works 30,495,980 35,758,786 (5,262,806) Parks and recreation 5,292,433 7,631,696 (2,339,263) Library 1,078,592 1,666,765 (588,173) Total Charges for Services $ 55,832,132 $ 59,746,716 $ (3,914,584) Operating Grants and Contributions for governmental activities showed a net decrease of$1.5 million from the previous fiscal year. Changes by service category are summarized in the table below. Operating Grants and Contributions As of June 30 Increase/ Service Category 2014 2013 (Decrease) General government $ 4,227,379 $ 4,786,541 $ (559,162) Public safety 9,800,468 8,644,384 1,156,084 Public works 15,032,182 17,188,263 (2,156,081) Parks and recreation 340,881 225,848 115,033 Library 55,647 90,827 (35,180) Total Operating Grants $ 29,456,557 $ 30,935,863 $ (1,479,306) Capital Grants and Contributions for governmental activities had a net decrease of$1.0 million from the previous fiscal year. Changes by service category are summarized in the table below. Capital Grants and Contributions As of June 30 Increase/ Service Category 2014 2013 (Decrease) General government $ 215643 $ 51,346 $ (29,703) Public safety - 280,000 (280,000) Public works 1,899,911 2,306,787 (406,876) Parks and recreation - 298,000 (298,000) Library - - - Total Capital Grants $ 1,921,554 $2,936,133 $ (1,014,579) 2015-02-17 Agenda Packet 14 Page 184 General Revenues are all other revenues not categorized as program revenues such as property taxes, sales taxes and investment earnings. Total general revenues from governmental activities were $109.2 million in fiscal year 2013-14. The largest percentage of general revenues received during the year for governmental activities were taxes of $106.6 million, which included Property Taxes of$45.3 million and Sales Taxes of$29.2 million. The City's General Revenues increased as a whole by $13.3 million when compared to the prior fiscal year. This significant increase is primarily attributable to Utility Users' Taxes, with other revenue sources presenting minor variances,reflecting a stable financial outlook. General Revenues As of June 30 Increase/ 2014 2013 (Decrease) Property Taxes $ 45,266,172 $ 45,146,022 $ 120,150 Sales Taxes 29,171,174 28,627,785 543,389 Franchise Taxes 9,499,909 9,266,768 233,141 Utility Users' Taxes 17,525,294 4,428,794 13,096,500 Business License Taxes 1,328,554 1,260,622 67,932 Transient Occupancy Taxes 2,632,774 2,471,252 161,522 Property Transfer Taxes 949,603 1,125,252 (175,649) Construction Taxes 209,075 413,552 (204,477) Investment Earnings 1,944,988 866,861 1,078,127 Transfer from Successor Agency - 239,320 (239,320) Miscellaneous 686,054 2,034,895 (1,348,841) Total General Revenues $ 109,213,597 $ 95,881,123 $ 13,332,474 During fiscal years 2011, 2012, and 2013, the City prudently began recording deferred revenue for collections of the City's Utility Users' Tax (UUT) related to wireless telecommunications, pending outcome of a legal challenge. The legal challenge was resolved through a class-action settlement agreement finalized in December 2013. Pursuant to the terms of the settlement agreement, the City updated its ordinance to clarify the applicability of the tax to wireless telecommunication services and to reduce the tax rate for all telecommunication services from 5% to 4.75%, effective March 1, 2014. With the legal challenge resolved, the City recognized all wireless UUT revenues received during fiscal year 2013-14 ($3.6 million) and recognized prior year deferred revenues totaling $10.5 million. Of the prior year revenues, $8 million was used to establish a settlement fund (TUT Common Fund) to be used for rebates and refunds to taxpayers and specified city activities, as required by the terms of the settlement agreement. Future revenues will be recognized as received. Total governmental activity type expenses were $181.1 million in fiscal year 2013-14. The largest expenses were incurred for Public Safety, Public Works and General Government. These three activities combined account for 90.3% of all general activity expenses. These expenses do not include capital outlays,which are reflected in the City's capital assets. 2015-02-17 Agenda Packet 15 Page 185 Governmental Expenses by Activity Public Works parks and 5% Recreation 4% Library 2% Interest on Public Long-Term Debt Safety General 4% 41% Government 14% Business Type Activities Net position for business-type activities was $233.9 million, an increase of$5.8 million from the prior fiscal year. Overall expenses for the business-type activities showed a $4.5 million decrease over the previous year. The decrease is largely attributable to a decrease in Sewer Fund related activities ($4.7 million) and minor decreases in Transit related activities ($0.1 million) and the Bayfront Trolley Station ($31,020). These decrease were slightly offset by increased expenses for Development Services Fund activities ($0.4 million) and Sewer Development Impact Fee activities ($6,352) Total program revenues for business-type activities were $46.3 million and are composed of sewer fees ($33.5 million), bus fares ($2.7 million), and development fees ($6.3 million). The Metropolitan Transit System, whom the City contracts with to provide transit service, provides a subsidy to make the City whole and is considered an operating grant ($3.8 million). Total expenses for the business-type activities were $39.2 million and were for expenses related to Sewer ($26.2 million), Transit Operations ($6.9 million), and processing of development permits and plans ($6.1 million). FUND LEVEL FINANCIAL ANALYSIS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The City uses governmental fund accounting to ensure compliance with budgetary allocations and to maintain control over resources that are legally, or otherwise, restricted for specific purposes. The following is a discussion of the individual"major" funds as shown on the Balance Sheet for Governmental Funds in the basic financial statements. 2015-02-17 Agenda Packet 16 Page 186 General Fund—The General Fund is used to account for the general operations of the City. It is used to account for all financial resources, except those required to be accounted for in another fund. The General Fund is always reported as a "major fund". For the fiscal year, the General Fund reported $133.9 million in revenues and $124.2 million in expenditures, resulting in revenues over expenditures in the amount of $9.7 million. After accounting for net other financing sources of$4.7 million, General Fund fund balance increased by $5.0 million. Total fund balance at June 30, 2014 was $33.0 million, composed of $43.3 million in assets combined with $6.7 million in liabilities and $3.6 million in deferred inflows of resources. Total fund balance included $7.4 million of nonspendable or restricted fund balance, which represents that portion of fund balance that is not available for appropriation. Committed fund balance totaled $6.2 million. This portion of fund balance includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council, and remains binding unless removed in the same manner. Restricted fund balance represents the portion of fund balance that reflects constraints placed on the use of resources that are externally imposed by creditors, grantors, contributors, or laws or regulations of other governments. As of June 30, 2014, there is no restricted fund balance in the General Fund. Assigned fund balance, totaling $4.8 million, represents that portion of a fund balance that includes amounts that are constrained by the government's intent to be used for specific purposes, but that are neither restricted nor committed. The City Council has delegated its authority to assign fund balance amounts to the City's Director of Finance. The final component of total fund balance is unassigned fund balance. Totaling $14.5 million, this is the portion of fund balance that is available for appropriation for any purpose. Unassigned fund balance represents 11.7% of total fiscal year 2013-14 General Fund expenditures. Sundry Grants Fund—The Sundry Grants fund is to account for miscellaneous grants such as: Supplemental Law Enforcement Services, California Library Services Act, Public Library Act, Asset Seizure, Local Law Enforcement Block Grants, federal library grants, waste management and recycling, energy conservation, parks and recreation, social service grants, Gayle McCandliss memorial cultural arts, federal assistance, CDBG program income projects, HOME project, and Community Development Block grants. The Sundry Grants Fund had total revenues of$13.7 million and expenditures of$16.7 million, resulting in revenues under expenditures in the amount of$3.0 million. The Sundry Grants Fund equity decreased by $1.8 million for the fiscal year after accounting for net other financing sources of$1.2 million. Fund equity decreased due to the use of Sundry Grants reserves that had been collected in previous years but not spent until fiscal year 2013-14. Total fund balance at June 30, 2014 was $3.3 million, composed of nonspendable ($3.1 million) and restricted ($0.2 million) fund balance. Low and Moderate Income Housing Successor Special Revenue Fund - The California legislature voted to end redevelopment agencies on February 1, 2012. This fund was created as a result of the dissolution process and was formerly known as the Low and Moderate Income Housing Fund. The City opted to become the Successor Agency to the Redevelopment Agency and to the Low and Moderate Housing Successor. For the year, this fund had revenues of$0.6 2015-02-17 Agenda Packet 17 Page 187 million composed primarily of interest earnings, property rentals and loan repayments from affordable housing projects. Housing expenditure activities totaled $0.1 million, resulting in a fund equity increase of $0.5 million. Total fund balance as of June 30, 2014 was $8.4 million composed entirely of restricted fund balance. City Debt Service Fund — This fund was established to account for the principal and interest payments on the City's interfund debt. Total fund balance as of June 30, 2014 was negative $36.9 million, composed entirely of unassigned fund balance. The fund balance increased by $0.1 million in fiscal year 2013-14 due to the payment of principal and interest on outstanding loans. Development Impact Fee Fund — This fund was established as a depository for various development impact fees (DIFs). The fees are levied against all new development in the City in order to pay for the construction or improvement of public facilities as a result of City growth. Total revenues for this fund totaled $7.6 million,with $6.9 million attributable to building permit fees for new development. Expenditures totaled $3.8 million, composed primarily of activity in the Transportation DIF, which spent $3.1 million on three major projects. The projects are the Otay Lakes Road widening, Willow Street Bridge widening, and Heritage Road Bridge. Other expenditures in the Transportation DIF totaling $0.2 million were for transportation planning and traffic calming projects. The Public Facilities DIF had staff time reimbursements of $0.3 million. Total fund equity decreased by $2.4 million for the year. As of June 30, 2014, this fund had a fund balance totaling $42.6 million, comprised of mostly cash ($33.3 million) and advances to other funds ($10.7 million), partially offset by $0.1 million in liabilities and $1.4 million in unavailable revenues. Unavailable revenue accounts for the prepayment of development impact fees before the actual building permit has been applied for. Revenue will be available once the permit application has been granted. Park Acquisition Development Fund - This fund was established as a depository for fees collected from developers for the purpose of providing park facilities directly benefiting and serving residents of the regulated subdivision. The Parkland Acquisition and Development in- lieu fee was adopted by the City to acquire neighborhood and community parkland and to construct park facilities. Total revenues for this fund totaled $2.9 million with $2.6 million attributable to building permit fees for new development. Expenditures totaled $29,522, reflecting capital improvement project staff time reimbursements. Total fund equity increased by $2.9 million for the year. As of June 30, 2014, the fund balance totaled $39.1 million, comprised primarily of cash ($29.2 million) and advances to other funds ($10.1 million), partially offset by $0.2 million in liabilities (unearned revenue). Of the $39.1 million fund balance, $9.9 million is designated nonspendable, with the remaining $29.2 million designated restricted. 2015-02-17 Agenda Packet 18 Page 188 Proprietary Funds The City's Sewer Fund is reported as a "major" fund on the Statement of Net Position for Proprietary Funds in the basic financial statements. Sewer Fund— The Sewer fund is used to account for all activities related to providing sewer service to the residents of Chula Vista. Resources for the fund come primarily from sewer service charges paid for by users of the system. For the fiscal year, operating revenues totaled $33.8 million. In addition, non-operating revenues totaling $1.4 million were realized (interest income). Operating expenses totaled $26.0 million for the year, with the single biggest item being the cost of wastewater treatment by the City of San Diego in the amount of$19.5 million. After accounting for all revenues and expenses, both operating and non-operating,net position of the fund increased by $6.4 million for the year, totaling $225.9 million as of June 30, 2014. Of total net position, $134.0 million is designated for sewer system infrastructure such as pump stations, sewer lines and other related equipment and therefore not available to fund the day-to- day operations of the sewer system. Total current assets total $73.9 million, comprised of cash and investments ($68.9 million) and accounts receivable ($5.0 million). Fund liabilities at the end of the fiscal year totaled $993,846, of which $937,114 were considered current liabilities. The fund has no outstanding bonded debt. GENERAL FUND BUDGETARY HIGHLIGHTS The final amended general fund budget totaled $142,734,901 including $10,856,225 in budget amendments to the originally adopted budget and encumbrances of$4,127,544 which will fund contractual obligations and outstanding purchase orders. The General Fund's budget amendments of$10,856,225 are summarized as follows: Budget Amendments Appropriation Book Donation $ 1,500 HarborFest 2013 50,000 Target Grant for Literacy 2,000 Lease for 610 Bay Boulevard 8,000 1st Quarter Budget Adjustments 495,541 Citywide Critical Needs 523,000 ALS Paramedic Training Cost 127,637 Business Cluster Analysis 128,000 SAFE Funds Appropriation Street Signs 55,000 Fleet Maintenance Charges for Equip. Mechanic & Inventory Specialist 58,136 Consulting Services for Polling and Public Outreach 106,800 Appropriation of donated/Sponsorship/Grant Funds 22,181 TUT Settlement Appropriation 8,017,453 Funding for Law Office Manager 38,750 2nd Quarter Budget Adjustments 602,100 Rohr Park County Lease and Ranger Improvements 30,000 2015-02-17 Agenda Packet 19 Page 189 Budget Amendments Appropriation 3rd Quarter Budget Adjustments 482,596 Friends of CV Parks &Rec for Critical Hours Programming and Equip. 4,110 McFarlane Promotions Initial Payment for HarborFest 2014 7,500 FY14 Year-End Budget Adjustments 95,920 Total General Fund Budget Amendments $ 10,856,225 CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The City's investment in capital assets for its governmental and business type activities as of June 30, 2014, amounts to $916.9 million, net of accumulated depreciation of $492.1 million. This investment in capital assets includes land, buildings, improvements, machinery and equipment, infrastructure and construction in progress. Infrastructure assets are items that are normally immovable and of value only to the City such as roads, bridges, streets and sidewalks, drainage systems, lighting systems and similar items. The total change to the City's investment in capital assets for the current fiscal year was a positive of $2.5 million, net of accumulated depreciation. Additional information on the City's capital assets can be found in Note 5 of the notes to the financial statements. Debt Administration Long Term Debt- At June 30, 2014, the City had $140.0 million in debt outstanding compared to the $142.6 million last year, a net decrease of 1.8%. The majority of this debt is in the form of Certificates of Participation ($121.7 million) and a CDBG Section 108 Loan ($7.9 million). The remainder of the outstanding long-term debt is in the form of loans, notes payable, and capital lease obligations. The City has no outstanding general obligation debt. The City made principal payments of$6.4 million during the fiscal year. In July 2013, the City entered into a tax-exempt facility lease purchase agreement for solar energy projects totaling $2.1 million. In addition, the Chula Vista Public Financing Authority issued $45.9 million in Certificates of Participation in February 2014, to refinance the outstanding 2002 Certificates of Participation (originally issued to finance the Police Facility project). Based on bond pricing, the City has recorded a bond premium for this issuance totaling $3.5 million In September of 2013, the City was upgraded from an "A" to an "AA-" rating by Standard & Poor's for Certificates of Participation, which represents a stable outlook. Additional information on the City's long-term debt obligations can be found in Note 6 of the Notes to the Financial Statements. 2015-02-17 Agenda Packet 20 Page 190 ECONONUC FACTORS AND NEXT YEAR'S BUDGET Assessed Valuation and Property Tax According to the County of San Diego Assessors' Office, the city's total assessed valuation (both secured and unsecured) for the 2013-14 fiscal year was $22,477,780,629. This is an increase of $738,820,840 or 3.4% over the 2012-13 assessed valuation. It should be noted that assessed value was set as of January 1, 2013. Actual current secured property tax revenues for the fiscal year totaled$25.5 million,which is $0.3 million less than collected in the prior year. Building Activity The valuation of all building and related permits totaled $208 million for the 2013-14 fiscal year. This is approximately 30% less than the valuation of$296.2 million for these permit categories in the prior fiscal year. As of June 30 Increase/ Building Permit Valuation 2014 2013 (Decrease) Residential $ 116,869,207 $ 226,972,213 $ (110,103,007) -48.5% Non-Residential 53,222,385 26,385,454 26,836,931 101.7% Additions &Alterations 37,643,216 42,574,354 (4,931,138) -11.6% Demolitions 260,004 244,984 15,020 6.1% Total $ 207,994,811 $ 296,177,004 $ (88,182,194) -29.8% The year over year decrease in building permits activity reflects the continued instability of the new construction market. Local Economy The USD Burnham-Moores Center for Real Estate's Index of Leading Economic Indicators for San Diego County rose 0.6% in October 2014. The gain was led by sharp increases in initial claims for unemployment insurance and the national economy, with smaller positive moves in consumer confidence, help wanted advertising, and local stock prices. These positive indicators were offset by a sharp decline in building permits. The five advancing components outweighed the lone declining indicator to push the USD Index to its fifth consecutive gain. The outlook remains for solid growth in the local economy through at least the end of 2015. The local unemployment rate is 1.6% lower than last year, and civilian employment is up almost 55,000 year over year. The improving labor market should continue to advance consumer confidence. Sustained declines in gas prices, along with the recent increase in the statewide minimum wage from $8 to $9 per hour should further serve to increase consumer spending in the regional economy.i 1 Bumham-Moores Center for Real Estate,University of San Diego http://home.sandiego.edu/—agin/usdlei/index.html;http://home.sandiego.edu/—agin/usdlei/INDEX14.00T.doc 2015-02-17 Agenda Packet 21 Page 191 San Diego Index of Leading Economic Indicators 135 130 125 120 — 115 110 105 100 95 90 85 00 00 00 0\ 0\ 0\ O O O — — .--i cd cd N cd cd N cd cd N cd cd N cd cd N cd cd N cd cd N ti C/� " C/� " C/� " C/� " C/� " C/� " Cn July 2014 home prices in San Diego County were up 8% from a year ago according to Zillow Inc., a company that tracks and analyzes real estate markets. The reported median price for all San Diego County home sales was $464,900. All of Chula Vista's five zip codes saw increases in the median price of single-family residences according to the report. As most cities and counties across the nation, Chula Vista continues to move forward in its economic recovery. Data for July 2014 Compared to July 2013 Median Price Percent Zip Code Locale 2014 2013 Change 91910 North $ 394,250 $ 360,000 10% 91911 South $ 368,450 $ 348,750 6% 91913 Eastlake $ 426,725 $ 382,900 11% 91914 NE $ 576,000 $ 560,200 3% 91915 SE $ 433,075 $ 424,125 2% Fiscal Year 2014-15 Budget The City ended the 2013-14 fiscal year with unassigned fund balance of $14.5 million and a committed fund balance of $6.2 million, including the $3.6 million Economic Contingency Reserve. In June 2014, the Chula Vista City Council adopted the 2014-15 annual budget which provides $283.6 million in appropriations to fund all City activities. The General Fund budget totaled $134.5 million ($1.7 million for capital). Due to the economic uncertainties caused by the slow economic recovery and the ongoing threat of the State diverting City revenues to balance its own budget, the City continues to adopt a one-year budget. 2015-02-17 Agenda Packet 22 Page 192 The national mortgage crisis continues to impact overall property values and property tax growth. Based on information received from the San Diego County Assessor, Chula Vista's projected change in net taxable assessed value for fiscal year 2014-15 is positive 0.454% when compared to the 2013-14 taxable assessed values. Management anticipated this slowdown in the housing market, and its effects on property tax revenue growth, as well as the overall condition of the economy, and adjusted revenue estimates in the 2014-15 budget accordingly. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City's finances for all of its citizens, taxpayers, customers, investors and creditors. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the City of Chula Vista, Finance Department, 276 Fourth Avenue, Chula Vista, CA 91910. 2015-02-17 Agenda Packet 23 Page 193 ;mp"FW CITY OF CHULAVISTA 2015-02-17 Agenda Packet 24 Page 194 BASIC FINANCIAL STATEMENTS 2015-02-17 Agenda Packet 25 Page 195 ;mp"FW CITY OF CHULAVISTA 2015-02-17 Agenda Packet 26 Page 196 GOVERNMENT-WIDE FINANCIAL STATEMENTS 2015-02-17 Agenda Packet 27 Page 197 ;mp"FW CITY OF CHULAVISTA 2015-02-17 Agenda Packet 28 Page 198 CITY OF CHULA VISTA STATEMENT OF NET POSITION JUNE 30,2014 Primary Government Governmental Business-Type Activities Activities Total ASSETS Current assets: Cash and investments $ 140,596,163 $ 78,867,975 $ 219,464,138 Receivables: Accounts 1,173,739 5,103,782 6,277,521 Taxes 8,419,765 - 8,419,765 Accrued interest 176,469 95,773 272,242 Deferred loans 47,395,279 - 47,395,279 Grants - 179,332 179,332 Advances to successor agency 13,613,398 - 13,613,398 Other receivables 10,677 - 10,677 Prepaid costs 85,327 - 85,327 Due from other governments 5,328,733 - 5,328,733 Total Current Assets 216,799,550 84,246,862 301,046,412 Non-current assets: Restricted assets: Cash and investments 755,411 - 755,411 Cash with fiscal agent 9,009,495 - 9,009,495 Internal balances (14,684,187) 14,684,187 - Capital assets not being depreciated 99,561,842 2,572,979 102,134,821 Capital assets,net of depreciation 670,154,902 133,940,289 804,095,191 Total non-current assets 764,797,463 151,197,455 915,994,918 Total Assets 981,597,013 235,444,317 1,217,041,330 LIABILITIES Current liabilities: Accounts payable 9,733,456 491,753 10,225,209 Accrued liabilities 507,556 293,356 800,912 Accrued interest 1,928,573 - 1,928,573 Unearned revenue 632,892 137,000 769,892 Retention payable 268,881 - 268,881 Compensated absences due within one year 4,463,759 455,464 4,919,223 Claims payable-due within one year 4,000,000 - 4,000,000 Developer deposits payable 13,060,621 50,026 13,110,647 Short-term portion of long term debt 5,262,095 - 5,262,095 Total current liabilities 39,857,833 1,427,599 41,285,432 Non-current liabilities: Compensated absences-due in more than one year 2,161,701 109,810 2,271,511 Claims payable-due in more than one year 18,361,235 - 18,361,235 Pollution remediation obligation 150,000 - 150,000 Net OPEB liability 7,369,000 - 7,369,000 Long-term debt,net of short term portion 134,754,528 - 134,754,528 Total non-current liabilities 162,796,464 109,810 162,906,274 Total Liabilities 202,654,297 1,537,409 204,191,706 Net Position: Net investment in capital assets 649,314,016 136,513,268 785,827,284 Restricted for: Community development projects 17,177,798 - 17,177,798 Public safety 3,082,606 - 3,082,606 Parks and recreation 81,104 - 81,104 Capital projects 86,764,749 - 86,764,749 Unrestricted 22,522,443 97,393,640 119,916,083 Total Net Position S 778,942,716 S 233,906,908 S 1,012,849,624 2 01 ft2N6eAJVM M YStatements 29 Page 199 CITY OF CHULA VISTA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,2014 Program Revenues Operating Capital Total Charges for Contributions Contributions Program Expenses Services and Grants and Grants Revenues Functions/Programs Primary Government: Governmental Activities: General government $ 25,386,867 $ 8,767,069 $ 4,227,379 $ 21,643 $ 13,016,091 Public safety 74,896,803 10,198,058 9,800,468 - 19,998,526 Public works 63,312,155 30,495,980 15,032,182 1,899,911 47,428,073 Parks and recreation 6,118,351 5,292,433 340,881 - 5,633,314 Library 4,092,263 1,078,592 55,647 1,134,239 Interest on long-term debt 7,287,461 - - - - Total Governmental Activities 181,093,900 55,832,132 29,456,557 1,921,554 87,210,243 Business-Type Activities: Sewer Fund 26,046,175 33,190,660 - - 33,190,660 Bayfront Trolley Station 61,823 - 143,504 143,504 Transit Fund 6,875,214 2,672,231 3,656,854 6,329,085 Sewer Development Impact Fees 129,279 268,092 - 268,092 Development Services Fund 6,113,133 6,338,495 6,338,495 Total Business-Type Activities 39,225,624 42,469,478 3,800,358 - 46,269,836 Total Primary Government $ 220,319,524 $ 98,301,610 $ 33,256,915 $ 1,921,554 $ 133,480,079 General Revenues: Taxes: Property taxes,levied for general purpose Transient occupancy taxes Sales taxes Franchise taxes Business licenses taxes Utility users tax Residential Construction tax Property transfer tax Investment earnings Miscellaneous Gain on sale of capital asset Transfers Total General Revenues,and Transfers Change in Net Position Net Position at Beginning of Year Restatement of Net Position Net Position at Beginning of Year,as restated Net Position at End of Year 201 SS-q62N&XhQWpfiKNatements 30 Page 200 Net(Expenses)Revenues and Changes in Net Position Primary Government Governmental Business-Type Activities Activities Total $ (12,370,776) $ $ (12,370,776) (54,898,277) (54,898,277) (15,884,082) (15,884,082) (485,037) (485,037) (2,958,024) (2,958,024) (7,287,461) (7,287,461) (93,883,657) - (93,883,657) 7,144,485 7,144,485 81,681 81,681 (546,129) (546,129) 138,813 138,813 225,362 225,362 7,044,212 7,044,212 (93,883,657) 7,044,212 (86,839,445) 45,266,172 - 45,266,172 2,632,774 2,632,774 29,171,174 29,171,174 9,499,909 9,499,909 1,328,554 1,328,554 17,525,294 17,525,294 209,075 209,075 949,603 - 949,603 1,944,988 1,505,052 3,450,040 686,054 819,872 1,505,926 - 25,778 25,778 3,551,004 (3,551,004) - 112,764,601 (1,200,302) 111,564,299 18,880,944 5,843,910 24,724,854 760,251,252 228,062,998 988,314,250 (189,480) - (189,480) 760,061,772 228,062,998 988,124,770 $ 778,942,716 $ 233,906,908 $ 1,012,849,624 201§-q6,N&Xh%KijWpfiKNatements 31 Page 201 ;mp"FW CITY OF CHULAVISTA 2015-02-17 Agenda Packet 32 Page 202 FUND FINANCIAL STATEMENTS 2015-02-17 Agenda Packet 33 Page 203 ;mp"FW CITY OF CHULAVISTA 2015-02-17 Agenda Packet 34 Page 204 GOVERNMENTAL FUND FINANCIAL STATEMENTS 2015-02-17 Agenda Packet 35 Page 205 CITY OF CHULA VISTA BALANCESHEET GOVERNMENTAL FUNDS JUNE 30,2014 Special Revenue Funds Capital Projects Funds Housing Park Sundry Developer Successor Acquisition Development General Grants Deposit Agency Development Impact Funds Assets: Pooled cash and investments $ 20,276,201 $ 3,894,310 $ 13,272,033 $ 2,077,920 $ 29,153,089 $ 33,341,982 Receivables: Accounts 792,147 77,261 - - - - Taxes 7,378,291 105,850 - - - Accrned interest 27,374 3,535 2,619 33,691 60,218 Deferred loans 65,454 19,385,357 25,123,027 - - Prepaid costs 61,805 23,522 - Due from other governments 844,196 3,063,246 Due from other funds 2,937,494 - - - Advances to other funds 1,661,076 - - 10,147,581 10,740,681 Restricted assets: Cash and investments - 25,847 729,564 - - Cash and investments with fiscal agents - 105,463 - Due from Successor Agency of Chula Vista RDA 9,297,040 - 4,316,358 - - Total Assets S 43,341,078 S 26,684,391 S 13,272,033 S 32,249,488 S 39,334,361 S 44,142,881 Liabilities,Deferred inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 6,712,402 $ 825,449 $ 211,412 $ 1,165 $ $ 14,440 Accrued liabilities - 421,118 - - - Unearned revenues 632,892 - Pass-through payables 46,717 - 135,433 Deposits payable - 13,060,621 - Due to other funds 2,197,028 - Advances from other funds - - - - Total Liabilities 697129402 491239204 1392729033 19165 - 1499873 Deferred inflows of resources: Unavailable revenues 3,669,767 19,268,557 - 23,868,562 207,581 1,408,839 Total Deferred inflows of Resources 3,669,767 19,268,557 - 239868,562 2079581 1,408,839 Fund Balances: Nonspendable: Prepaid costs 61,805 23,522 - - - - Notes and loans 5,854,271 3,038,664 - 9,940,000 10,535,338 Advances to other funds 1,508,736 - - - - Restricted for: Community development projects - - 8,379,761 Public safety 230,444 - Parks and recreation - - - Capital Projects 29,186,780 32,048,831 Committed to: Public safety - - - Capital Projects 1,839,650 Debt service - Economic contingency 3,600,000 San Diego Authority for Freeway Emergency 695,951 Legal counsel 80,000 Assigned to: General government 535,776 Public safety 1,106,960 Parks and recreation 152,853 Public works 101,975 Library 41 Public liability 2,909,639 Unassigned 14,511,252 - - - - Total Fund Balances 3299589909 3,292,630 - 8,379,761 39,126,780 42,584,169 Total Liabilities,deferred inflows of resources,and Fund Balances S 43,341,078 S 26,684,391 S 13,272,033 S 32,249,488 S 39,334,361 S 44,142,881 201§-ed:M1rAgJF' PW1kLtements 36 Page 206 CITY OF CHULA VISTA BALANCESHEET GOVERNMENTALFUNDS JUNE 30,2014 Debt Service Funds Public Other Total City Debt Financing Governmental Governmental Service Authority Funds Funds Assets: Pooled cash and investments $ 430,928 $ 1221,012 $ 33,904,204 $ 137,571,679 Receivables: Accounts - - 304,331 1,173,739 Taxes - 935,624 8,419,765 Accrued interest 42 47,447 174,926 Deferred loans - 2,821,441 47,395,279 Prepaid costs - 85,327 Due from other governments 1,421,291 5,328,733 Due from other funds - 2,937,494 Advances to other funds 22,549,338 Restricted assets: Cash and investments - 755,411 Cash and investments with fiscal agents 8,904,032 9,009,495 Due from Successor Agency of Chula Vista RDA - - - 13,613,398 Total Assets S 430,928 S 10,125,086 S 39,434,338 S 249,014,584 Liabilities,Deferred inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ $ $ 1,663,407 $ 9,428,275 Accrued liabilities 45,774 466,892 Unearned revenues - 632,892 Pass-through payables 86,731 268,881 Deposits payable - 13,060,621 Due to other funds 740,466 2,937,494 Advances from other funds 37,283,269 - 37,283,269 Total Liabilities 3792839269 - 295369378 6490789324 Deferred inflows of resources: Unavailable revenues - 2,683,933 51,107,239 Total Deferred inflows of Resources - - 296839933 5191079239 Fund Balances: Nonspendable: Prepaid costs - - - 85,327 Notes and loans - - 29,368,273 Advances to other funds - - - 1,508,736 Restricted for: Community development projects - - 8,798,037 17,177,798 Public safety - - 2,852,162 3,082,606 Parks and recreation - - 81,104 81,104 Capital Projects - - 25,529,138 86,764,749 Committed to: Public safety - - 45,736 45,736 Capital Projects - - 231,699 2,071,349 Debt service - 10,125,086 275,043 10,400,129 Economic contingency - - - 3,600,000 San Diego Authority for Freeway Emergency - 695,951 Legal counsel - 80,000 Assigned to: General government - 535,776 Public safety - 1,106,960 Parks and recreation - 152,853 Public works - 101,975 Library - 41 Public liability - 2,909,639 Unassigned (36,852,341) - (3,598,892) (25,939,981) Total Fund Balances (3698529341) 10,125,086 3492149027 13398299021 Total Liabilities,deferred inflows of resources,and Fund Balances S 430,928 S 10,125,086 S 39,434,338 S 249,014,584 201§-ed:M1rAgJFiwPW1kL*emen1s 37 Page 207 ;mp"FW CITY OF CHULAVISTA 2015-02-17 Agenda Packet 38 Page 208 CITY OF CHULA VISTA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 30,2014 Fund balances of governmental funds $ 133,829,021 Amounts reported for governmental activities in the statement of net position are different because: Capital assets net of depreciation have not been included as financial resources in governmental fund activity. 768,655,521 Long-term debt and compensated absences that have not been included in the governmental fund activity: Bonds payable $ (121,650,000) Section 108 Loan (7,913,000) Pollution Remediation Obligation (150,000) Unamortized bond premiums/discounts (2,691,399) Capital leases (2,047,312) Claims liability (22,361,235) Notes payable (5,714,912) Compensated Absences (6,548,853) (169,076,711) Governmental funds report all OPEB contributions as expenditures, however in the statement of net position any excesses or deficiencies in contributions in relation to the Annual Required Contribution(ARC)are recorded as an asset or liability. (7,369,000) Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds. (1,928,573) Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities.These are included in the intergovernmental revenues in the governmental fund activity. 51,107,239 Internal service funds are used by management to charge the costs of certain activities,such as equipment management and self-insurance,to individual funds. The assets and liabilities of the internal service funds must be added to the statement of net position. 3,725,219 Net Position of governmental activities $ 778,942,716 200-w2 feAlyAi YStatements 39 Page 209 CITY OF CHULA VISTA STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED.TUNE 30 2014 Special Revenue Funds Capital Projects Funds Housing Park Developer Successor Acquisition Development General Sundry Grants Deposit Agency Development Impact Funds Revenues: Taxes $ 105,718,638 $ $ $ $ $ Licenses and permits 1,315,445 Intergovernmental 2,477,213 12,054,489 Charges for services 9,257,946 1,104,263 - Use ofmoney and property 2,522,893 49,039 495,188 309,379 506,315 Fines and forfeitures 1,009,736 - - - - Developer participation - - - 2,614,066 6,901,855 Miscellaneous 11,580,545 494,360 127,043 - 146,608 Total Revenues 133,882,416 13,702,151 622,231 2,923,445 7,554,778 Expenditures: Current: General government 20,586,160 3,192,996 158,171 - 291,733 Public safety 68,776,426 7,272,701 - - Parks and recreation 3,588,693 500 - Public works 27,092,607 2,805,900 172,098 Library 3,336,380 473,624 - - Capital outlay 849,234 2,994,488 29,522 3,341,706 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - - Total Expenditures 124,229,500 16,740,209 158,171 29,522 3,805,537 Excess(Deficiency)of Revenues Over(Under)Expenditures 9,652,916 (3,038,058) 464,060 2,893,923 3,749,241 Other Financing Sources(Uses): Transfers in 9,571,300 85,813 - - - Transfers out (14,234,482) (1,017,578) (6,111,579) Capital leases 2,121,500 Proceeds from issuance ofbonds - Bond premium - Total Other Financing Sources (Uses) (4,663,182) 1,189,735 - - (6,111,579) Net Change in Fund Balances 4,989,734 (1,848,323) 464,060 2,893,923 (2,362,338) Fund Balances,Beginning of Year 27,969,175 5,140,953 7,915,701 36,232,857 44,946,507 Fund Balances,End of Year $ 32,958,909 $ 3,292,630 $ $ 8,379,761 $ 39,126,780 $ 42,584,169 201§-eo11,&sAgJF �f�j�kWemenIs 40 Page 210 CITY OF CHULA VISTA STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED.TUNE 30 2014 Debt Service Funds Public Other Total City Debt Financing Governmental Governmental Service Authority Funds Funds Revenues: Taxes $ $ $ 1,107,247 $ 106,825,885 Licenses and permits 39,897 1,355,342 Intergovernmental 14,115,708 28,647,410 Charges for services 10,402,937 20,765,146 Use of money and property 111,628 687,031 4,681,473 Fines and forfeitures - 675,532 1,685,268 Developer participation - 9,515,921 Miscellaneous - 2,548,404 14,896,960 Total Revenues 111,628 29,576,756 188,373,405 Expenditures: Current: General government 8,592 5,104,229 29,341,881 Public safety 4,295 404,557 76,457,979 Parks and recreation - 1,248 3,590,441 Public works 10,824,329 40,894,934 Library - 3,810,004 Capital outlay - 8,132,388 15,347,338 Debt service: Principal retirement - 52,645,000 1,395,855 54,040,855 Interest and fiscal charges 660,120 6,510,358 679,970 7,850,448 Total Expenditures 660,120 59,168,245 26,542,576 231,333,880 Excess(Deficiency)of Revenues Over(Under)Expenditures (660,120) (59,056,617) 3,034,180 (42,960,475) Other Financing Sources(Uses): Transfers in 817,779 9,658,967 10,344,606 30,478,465 Transfers out (36,851) (271,002) (5,832,268) (27,503,760) Capital leases - 2,121,500 Proceeds from issuance ofbonds 45,920,000 45,920,000 Bond premium - 3,537,111 - 3,537,111 Total Other Financing Sources (Uses) 780,928 58,845,076 4,512,338 54,553,316 Net Change in Fund Balances 120,808 (211,541) 7,546,518 11,592,841 Fund Balances,Beginning of Year (36,973,149) 10,336,627 26,667,509 122,236,180 Fund Balances,End of Year $ (36,852,341) $ 10,125,086 $ 34,214,027 $ 133,829,021 201§-voll,&sAgLY �f�j�kWemeols 41 Page 211 CITY OF CHULA VISTA RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,2014 Net change in fund balances-total governmental funds $ 11,592,841 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds reported capital outlay as expenditures.However,in the Government-Wide Statement of Activities and Changes in Net Position,the cost of those assets was allocated over their estimated useful lives as depreciation expense. This was the amount of capital assets recorded in the current period.The amount of repairs and maintenance included in Capital Outlay was$11,658,313. 27,005,651 Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities and Changes in Net Position,but they did not require the use of current financial resources.Therefore,depreciation expense was not reported as expenditures in the Governmental Funds.This amount did not include the depreciation expense for Internal Service Funds (26,604,663) in the amount of$351,254. The issuance of long-term liabilities provided current financial resources to governmental funds,but issuing debt increased long-term liabilities in the Government-Wide Statement of Net Position.Repayment of long-term liabilities was an expenditures in governmental funds,but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position. Issuance of long-term debt (48,041,500) Premium from issuance of long-term debt (3,537,111) Principal payment of long-term debt 54,040,855 Amortization expenses were reported in the Government-Wide Statement of Activities and Changes in Net Position,but they did not require the use of current financial resources.Therefore,amortization expenses were not reported as expenditures in the Governmental Funds. Bond premium and discount 78,830 Net Pension Asset 19,071 Certain long-term liabilities were reported in the Government-Wide Statement of Activities and Changes in Net Position, but they did not require the use of current financial resources.Therefore,long-term liabilities were not reported as expenditures in governmental funds.These amounts represented the changes in long-term liabilities from prior year. Changes in compensated absences 121,709 Changes in claims payable (1,339,776) Changes in arbitrage liability 7,830 Changes in net OPEB liabilities (1,380,142) Interest expense on long-term debt was reported in the Government-Wide Statement of Activities and Changes in Net Position,but it did not require the use of current financial resources.This amount represented the change in accrued interest from prior year. 484,157 Interest earned on long-term receivables did not provide current financial resources were not reported as revenues in the Governmental Funds. 7,004,246 Internal service funds were used by management to charge the costs of certain activities to individual funds.The net revenue of internal service funds was reported with governmental activities. (571,054) Change in net position of governmental activities $ 18,880,944 2015v'&2N eAlprfigK 1Statements 42 Page 212 PROPRIETARY FUND FINANCIAL STATEMENTS 2015-02-17 Agenda Packet 43 Page 213 CITY OF CHULA VISTA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30,2014 Business-Type Activities-Enterprise Funds Governmental Other Activities- Enterprise Internal Sewer Fund Funds Totals Service Funds Assets: Current: Cash and investments $ 68,853,203 $ 10,014,772 $ 78,867,975 $ 3,024,484 Receivables: Accounts 5,001,946 101,836 5,103,782 12,220 Accrued interest 81,235 14,538 95,773 - Grants - 179,332 179,332 - Total Current Assets 73,936,384 10,310,478 84,246,862 3,036,704 Noncurrent: Advances to other funds 18,962,157 - 18,962,157 - Capital assets-net of accumulated depreciation 133,969,330 2,543,938 136,513,268 1,061,223 Total Noncurrent Assets 152,931,487 2,543,938 155,475,425 1,061,223 Total Assets $ 226,867,871 $ 12,854,416 $ 239,722,287 $ 4,097,927 Liabilities and Net Position: Liabilities: Current: Accounts payable $ 455,546 $ 36,207 $ 491,753 $ 305,163 Accrued liabilities 284,884 8,472 293,356 40,682 Unearned revenues - 137,000 137,000 - Deposits payable 50,026 - 50,026 Accrued compensated absences 146,658 308,806 455,464 - Total Current Liabilities 937,114 490,485 1,427,599 345,845 Noncurrent: Advances from other funds - 4,228,226 4,228,226 - Accrued compensated absences 56,732 53,078 109,810 76,607 Total Noncurrent Liabilities 56,732 4,281,304 4,338,036 76,607 Total Liabilities 993,846 4,771,789 5,765,635 422,452 Net Position: investment in capital assets 133,969,330 2,542,490 136,511,820 1,061,223 Unrestricted 91,904,695 5,540,137 97,444,832 2,614,252 Total Net Position 225,874,025 8,082,627 233,956,652 3,675,475 Total Liabilities and Net Position $ 226,867,871 $ 12,854,416 $ 239,722,287 $ 4,097,927 Reconciliation of Net Position to the Statement of Net Position Net Position per Statement of Net Position-Proprietary Funds $ 233,956,652 Prior years'accumulated adjustment to reflect the consolidation of internal service funds activities related to the enterprise funds - Current years'adjustments to reflect the consolidation of internal service activities related to enterprise funds (49,744) Net Position per Statement of Net Position $ 233,906,908 201 SS-q62N&Xh%Ki1WpfiKNatements 44 Page 214 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS YEAR ENDED JUNE 30,2014 Business-Type Activities-Enterprise Funds Governmental Other Activities- Enterprise Internal Sewer Fund Funds Totals Service Funds Operating Revenues: Sales and service charges $ 33,190,660 $ 9,278,818 $ 42,469,478 $ Interdepartmental charges - - - 5,683,815 Other 626,855 186,537 813,392 54,586 Total Operating Revenues 33,817,515 9,465,355 43,282,870 5,738,401 Operating Expenses: Administration and general 18,791,109 12,751,627 31,542,736 6,715,536 Source of supply 1,866,167 - 1,866,167 - Depreciation expense 5,340,593 363,457 5,704,050 254,424 Total Operating Expenses 25,997,869 13,115,084 39,112,953 6,969,960 Operating Income(1,oss) 7,819,646 (3,649,729) 4,169,917 (1,231,559) Nonoperating Revenues(Expenses): Intergovernmental 6,480 3,800,358 3,806,838 - Interest revenue 1,395,045 110,007 1,505,052 13,613 Interest expense - (62,927) (62,927) - Gain(loss)on disposal of capital assets 25,778 25,778 20,850 Total Nonoperating Revenues(Expenses) 1,401,525 3,873,216 5,274,741 34,463 Income(Loss)Before Transfers 9,221,171 223,487 9,444,658 (1,197,096) Transfers in - 651,882 651,882 600,000 Transfers out (2,774,326) (1,428,560) (4,202,886) (23,701) Changes in Net Position 6,446,845 (553,191) 5,893,654 (620,797) Net Position: Beginning of Year 219,427,180 8,635,818 228,062,998 4,296,272 End of Fiscal Year $ 225,874,025 $ 8,082,627 $ 233,956,652 $ 3,675,475 Reconciliation of Changes in Net Position to the Statement of Activities: Changes in Net Position,per the Statement of Revenues, Expenses and Changes in Fund Net Position-Proprietary Funds $ 5,893,654 Adjustment to reflect the consolidation of current fiscal year internal service funds activities related to enterprise funds (49,744) Changes in Net Position of Business-Type Activities per Statement of Activities $ 5,843,910 201�q&2&Xk%&ifPfiANatements 45 Page 215 CITY OF CHULA VISTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30,2014 Business-Type Activities-Enterprise Funds Governmental Other Activities- Enterprise Internal Sewer Fund Funds Totals Service Funds Cash Flows from Operating Activities: Cash received from customers and users $ 33,702,578 $ 8,919,535 $ 42,622,113 $ - Cash received from/(paid to)interfund service provided - - - 5,735,315 Cash paid to suppliers for goods and services (1,483,141) 65,058 (1,418,083) 13,841 Cash paid to employees for services (18,769,383) (12,738,832) (31,508,215) (6,707,583) Cash received from(payments to)others 15,750 15,750 Net Cash Provided(Used)by Operating Activities 139465,804 (3,754,239) 99711,565 (9589427) Cash Flows from Non-Capital Financing Activities: Cash transfers out (2,774,326) (1,365,632) (4,139,958) (23,701) Cash transfers in 651,882 651,882 600,000 Repayment received from other funds 3,800,358 3,800,358 - Advance to other funds (273,861) - (273,861) Grant subsidies (179,332) (179,332) - Net Cash Provided(Used)by Non-Capital Financing Activities (3,048,187) 299079276 (140,911) 576,299 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (7,555,337) (726) (7,556,063) (560,976) Interest paid on capital debt (62,927) (62,927) - Proceeds from sales of capital assets - 25,777 25,777 45,824 Net Cash Provided(Used)by Capital and Related Financing Activities (795559337) (379876) (795939213) (5159152) Cash Flows from Investing Activities: Interest received 1,392,109 108,019 1,500,128 13,613 Net Cash Provided(Used)by Investing Activities 1,392,109 108,019 1,500,128 139613 Net Increase(Decrease)in Cash and Cash Equivalents 492549389 (7769820) 3,477,569 (883,667) Cash and Cash Equivalents at Beginning of Year 64,598,814 10,791,592 75,390,406 3,908,151 Cash and Cash Equivalents at End of Year S 68,853,203 S 10,014,772 S 78,867,975 S 3,024,484 Reconciliation of Operating Income to Net Cash Provided(Used)by Operating Activities: Operating income(loss) $ 7,819,646 $ (3,649,729) $ 4,169,917 $ (1,231,559) Adjustments to reconcile operating income(loss) net cash provided(used)by operating activities: Depreciation 5,340,593 363,457 5,704,050 254,424 (Increase)decrease in accounts receivable (160,398) 194,318 33,920 (3,086) (Increase)decrease in taxes receivable 15,750 - 15,750 (Increase)decrease in prepaid expense 6,000 71,588 77,588 - Increase(decrease)in accounts payable 335,290 (50,430) 284,860 5,614 Increase(decrease)in deposits payable 45,461 - 45,461 - Increase(decrease)in accrued liabilities 41,736 43,900 85,636 8,227 Increase(decrease)in unearned revenue - (740,138) (740,138) - Increase(decrease)in compensated absences 21,726 12,795 34,521 7,953 Total Adjustments 5,646,158 (104,510) 595419648 273,132 Net Cash Provided(Used)by Operating Activities S 13,465,804 S (3,754,239) S 9,711,565 S (958,427) Non-Cash Investing,Capital,and Financing Activities: Gain/(Loss)on disposition of capital assets $ 39,923 $ - $ 39,923 $ Acquisition of Capital Assets - 696,512 696,512 201§qd2111pAtgFAWypWkAIemenIs 46 Page 216 FIDUCIARY FUND FINANCIAL STATEMENTS 2015-02-17 Agenda Packet 47 Page 217 CITY OF CHULA VISTA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30,2014 Private-Purpose Trust Fund Successor Agency of Agency the Former Chula Funds Vista RDA Assets: Pooled cash and investments $ 18,116,720 $ 5,259,830 Receivables: Notes and loans - 128,544 Accrued interest - 1,373 Restricted assets: Cash and investments with fiscal agents 130,310,642 4,881,442 Capital assets: Capital assets,not being depreciated - 9,502,300 Capital assets,net of accumulated depreciation - 1,179,925 Total Assets $ 148,427,362 $ 20,953,414 Liabilities and Net Position: Liabilities: Accounts payable $ 1,881 $ 222,439 Unearned revenues - 128,544 Deposits payable 215,225 - Due to other governments 54,156 52,279 Due to bond holders 82,765,752 - Long-term liabilities: Due in one year - 1,900,000 Due in more than one year 39,350,000 Due to the City of Chula Vista - 13,613,398 Deferred compensation liability 65,390,348 - Total Liabilities $ 148,427,362 55,266,660 Net Position: Held in trust for other purposes (34,313,246) Total Net Position $ (34,313,246) 201 �_4hW,W8ff,WlcWetements 48 Page 218 CITY OF CHULA VISTA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30,2014 Private-Purpose Trust Fund Successor Agency of the Former Chula Vista RDA Additions: Taxes $ 6,144,146 Intergovernmental 528 Interest and change in fair value of investments 113,598 Contributions from City 13 Total Additions 6,258,285 Deductions: Administrative expenses 1,029,136 Interest expense 2,253,385 Depreciation expense 47,724 Total Deductions 3,330,245 Changes in Net Position 2,928,040 Net Position-Beginning of the Year (37,241,286) Net Position-End of the Year $ (34,313,246) 201 �_QtfhWeWffff,WkWetements 49 Page 219 ;mp"FW CITY OF CHULAVISTA 2015-02-17 Agenda Packet 50 Page 220 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30,2014 NOTE DESCRIPTION PAGE I Reporting Entity and Summary of Significant Accounting Policies 52 2 Cash and Investments 66 3 Receivables 71 4 Interfund Balances and Transactions 77 5 Capital Assets 79 6 Long-Term Debt 81 7 Unearned/Deferred Revenue 94 8 Compensated Absences 94 9 Other Required Fund Disclosures 95 10 Self-Insurance Accrued Liabilities 96 11 Pension Plans 97 12 Post Retirement Health Benefits 100 13 Pollution Remediation Obligations 102 14 Commitments and Contingencies 103 15 Classification of Fund Balances 105 16 Prior Period Adjustment 106 2015-02-17 Agenda Packet 51 Page 221 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 1—Reporting Entity and Summary of Significant Accounting Policies The basic financial statements of the City of Chula Vista, California (the "City") have been prepared in conformity with generally accepted accounting principles of the United States of America("U.S. GAAP") as applied to governmental agencies. The Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. A. Reporting Entity The City,incorporated in 1911,was recognized as a city in the State of California by election in 1949. The City operates under an elected Council and appointed City Manager form of government and provides the following services as authorized by its charter: public safety, community services, engineering services, planning services, public works, general administrative services and capital improvements. The financial reporting entity consists of the primary government, the City, and its component units. Component units are legally separate entities for which the elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the primary government is accountable and their exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Blended component units, although legally separate entities, are, in substance part of the government's operation and so data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the combined financial statements to emphasize that they are legally separate from the government. The City Council acts as the governing body and is able to impose its will on the following organizations, establishing financial accountability. As a result, these organizations are considered component units of the City and are included within the financial statements of the City using the blended method. All component units have a June 30 year-end. The City has no discretely presented component units. The Chula Vista Industrial Development Authority (the "Development Authoriby The Development Authority was formed in February 1982 for the purpose of promoting and developing commercial, industrial and manufacturing enterprises and encouraging employment. The governing body of the Development Authority is comprised of the members of the City Council. The Development Authority's financial data and transactions are included within the capital projects fund type. The City does not produce separate financial statements for the Development Authority. The Chula Vista Public Financing Authority(the "Public Financing Authority') The Public Financing Authority was established by resolution, pursuant to the City Charter and Constitution of the State of California, as a public body, to serve the public purposes of the City. The resolution was adopted on April 4, 1995. The Public Financing Authority was established by a joint exercise of powers agreement between the City and the Redevelopment Agency. The 2015-02-17 Agenda Packet 52 Page 222 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 1—Reporting Entity and Summary of Significant Accounting Policies (Continued) A. Reporting Entity(Continued) governing body of the Public Financing Authority is comprised of the consenting members of the City Council. The Public Financing Authority is authorized to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations of, or for the purpose of making loans to the City and/or to refinance outstanding obligations of the City. The Chula Vista Municipal Financing Authority(the "Municipal Financing Authority') The Municipal Financing Authority was established by resolution, pursuant to the City Charter and Constitution of the State of California, as a public body, to serve the public purposes of the City. The resolution was adopted on June 11, 2013. The Municipal Financing Authority was established by a joint exercise of powers agreement between the City and the Housing Authority. The governing body of the Municipal Financing Authority is comprised of the consenting members of the City Council. The Municipal Financing Authority is authorized to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations of, or for the purpose of making loans to the City and/or to refinance outstanding obligations of the City. The Chula Vista Housing Authority(the "Housing Authority') The Housing Authority was created by the City of Chula Vista City Council ("City Council") in March 1993 to centrally coordinate and administer the City's programs for promoting balanced housing for families of all income levels. It was established pursuant to the State of California Health and Safety Code, Section 34200. It is empowered to develop,finance and own low income housing within the territorial limits of the City of Chula Vista. It uses a variety of local, state, and federal funding sources to administer and finance these programs. It is also the financing vehicle for the issuance of bonds for housing programs and services. The Housing Authority's financial data and transactions are included within the special revenue fund type. The City does not produce separate financial statements for the Housing Authority. B. Basis of Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate.Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements. In 2013,the City implemented GASB Statement No. 63,Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. The Statement of Net Position reports separate sections for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable. 2015-02-17 Agenda Packet 53 Page 223 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 1—Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus(Continued) Deferred Outflows of Resources represent outflows of resources (consumption of net position) that apply to future periods and that, therefore, will not be recognized as an expense until that time. Deferred Inflows of Resources represent inflows of resources (acquisition of net position) that apply to future periods and that,therefore,are not recognized as a revenue until that time. Government- Wide Financial Statements The City's Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements. These financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Certain types of transactions are reported as program revenues for the City in three categories: ➢ Charges for services ➢ Operating grants and contributions ➢ Capital grants and contributions Governmental Fund Financial Statements Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in Net Position as presented in these statements to the Net Position presented in the Government-Wide Financial Statements. The City has presented all major funds that met the applicable criteria. All governmental funds are accounted for on a spending or"current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. 2015-02-17 Agenda Packet 54 Page 224 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 1—Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus(Continued) Governmental Fund Financial Statements (Continued) Revenues are recorded when received in cash, except for revenue which is subject to accrual and are recognized when due by the City. Generally 60 days after year-end for primary revenue sources (i.e. property tax, sales tax,intergovernmental revenues and other taxes). Revenue recognition for grants is up to one year. Expenditures are recorded in the accounting period in which the related fund liability is incurred. Deferred revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met or when the government has a legal claim to the resources,the deferred revenue is removed from the Balance Sheet and revenue is recognized. The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34. The City reports the following major Governmental Funds: General Fund — This is the primary operating fund of the City. It is used to account for all revenues and expenditures that are not required to be accounted for in another fund. Sundry Grants Special Revenue Fund—This fund consists of miscellaneous grants/revenues such as: Supplemental law enforcement services, CBAG, California Library Services Act, asset seizure, local law enforcement block grants, California Recreation grants, Public Safety grants, ARRA grants, waste management and recycling, energy conservation, emergency shelter program, HOME program, CDBG program income project, and Community Development Block grants. Developer Deposits Special Revenue Fund- This fund is used to account for revenues received from various developers for development projects and is used to fund staff costs, and other costs related to specific projects. Housing Successor Agency Special Revenue Fund—This fund was established_pursuant to Health and Safety Code Section 34176(b)(2) and is used to fund low and moderate income housing and related expenditures through the collection of property taxes. The Low and Moderate Income Housing Successor Fund was created due to the dissolution of the Chula Vista RDA. In accordance with Health and Safety Code Section 34176(b)(2), on February 1, 2013, all rights, powers, assets, liabilities, duties and obligations of the Low and Moderate Income Housing Fund were transferred to the Low and Moderate Income Housing Successor Agency special revenue fund. City Debt Service Fund — This fund was established to account for principal and interest payments on the City's long-term loans. 2015-02-17 Agenda Packet 55 Page 225 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 1—Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus(Continued) Governmental Fund Financial Statements (Continued) Public Financing Authority Debt Service Fund- This fund is used to account for financing the acquisition of bonds, notes and other obligations of, or for the purpose of making loans to the City and/or to refinance outstanding obligations of the City. Development Impact Fund— This fund was established as a depository of various development impact fees. The fees are levied against all new development in the City in order to pay for the construction or improvement of public facilities as a result of City growth. Park Acquisition Development Capital Projects Fund — This fund is a depository for fees collected from property developers for the purpose of providing park, and recreational facilities directly benefiting and serving residents of the regulated subdivision being developed. This in-lieu fee was adopted by the City to acquire neighborhood and Community Parkland and to construct parks and recreational facilities. Proprietary Fund Financial Statements Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Fund Net Position, and a Statement of Cash Flows for each major Proprietary Fund. A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government-Wide Financial Statements. The City's internal service funds include three individual funds which provide services directly to other City funds. These areas of service include Fleet and Vehicle Maintenance,Information Technology Replacement and Workers Compensation. Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Fund Net Position presents increases(revenues)and decreases (expenses)in total Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts. Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund.All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses. 2015-02-17 Agenda Packet 56 Page 226 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 1—Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus(Continued) Proprietary Fund Financial Statements (Continued) The City reports the following major proprietary funds: Sewer Enterprise Fund— This fund consists of several sub-funds that are used to account for sewer activities: The Sewer Income Fund is a depository for all monies collected to cover the cost of connecting properties to the City's public sewer system. All monies received may be used only for the acquisition, construction,reconstruction,maintenance and operation of sanitation or sewerage facilities. The Trunk Sewer Capital Reserve Fund is used to account for sewerage facility participation fee received from owner or person making application for a permit to develop or modify use of any residential, commercial, industrial or other property, which increases the volume of flow into the City sewer system. All monies received shall be used for the enlargement of sewer facilities of the City so as to enhance efficiency of utilization and/or adequacy of capacity and for planning and/or evaluating any future proposals for area wide sewage treatment and/or water reclamation systems or facilities. The Sewer Service Revenue Fund is a depository for all monies collected from the monthly sewer service charge. Monies in this fund may be used for construction, maintenance, or operation of sewer. The Sewer Facility Replacement Fund is a depository for a portion of the revenue derived from the monthly sewer service charge. Monies in this fund shall be used solely for the purpose of refurbishment and/or replacement of sewerage facilities including related evaluation,engineering and utility modification costs. The Internal Service Funds are funds used to charge other City funds for fleet management, technology replacement services and workers compensation. Fiduciary Fund Financial Statements Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City's fiduciary funds represent agency funds and private purpose trust funds. Both agency funds and the private purpose trust funds are accounted for on the full accrual basis of accounting. Fiduciary fund types are accounted for according to the nature of the fund. The City's agency funds are purely custodial in nature (assets equal liabilities) and thus do not involve measurement of results of operations. These funds are used to account for money and property held by the City as trustee or custodian. They are also used to account for various assessment districts for which the City acts as an agent for debt service activities. The City's private purpose trust fund is a fiduciary fund type used by the City to report assets, liabilities and activities of the Successor Agency to the Chula Vista 2015-02-17 Agenda Packet 57 Page 227 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 1—Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus(Continued) Fiduciary Fund Financial Statements (Continued) Redevelopment Agency. Its results of operations are presented on the Statement of Changes of Fiduciary Net Position. The Successor Agency was created by the City of Chula Vista City Council (City Council) in August 2012. It was established pursuant to Assembly Bill xl 26. Its purpose is to expeditiously wind down the affairs of the dissolved RDA. The governing body of the Successor Agency is comprised of the members of the Oversight Board selected by the County of San Diego, City of Chula Vista, school and special districts. The Successor Agency has been included in the accompanying basic financial statements as a private purpose trust fund. C. Encumbrances Formal budgetary integration is employed as a management control device. Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration. Encumbrances outstanding at year-end do not constitute U.S. GAAP basis expenditures or liabilities because the commitments will be honored during the subsequent year. D. Cash, Cash Equivalents and Investments The City pools its available cash for investment purposes. The City considers pooled cash and investment amounts,with original maturities of three months or less,to be cash equivalents. Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. The City reported its investments at fair value and the unrealized loss on investments amounted to $506,672 for the fiscal year ended June 30,2014. The statement of cash flows requires presentation of"cash and cash equivalents". For the purposes of the statement of cash flows, the City considers all proprietary fund pooled cash and investments as "cash and cash equivalents",as such funds are available to the various funds as needed. Certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas: ➢ Interest Rate Risk ➢ Credit Risk • Overall • Custodial Credit Risk • Concentration of Credit Risk ➢ Foreign Currency Risk 2015-02-17 Agenda Packet 58 Page 228 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 1 —Reporting Entity and Summary of Significant Accounting Policies (Continued) D. Cash, Cash Equivalents and Investments(Continued) In addition, other disclosures are specified including use of certain methods to present deposits and investments,highly sensitive investments,credit quality at year-end and other disclosures. E. Inventories and Prepaid items Inventories are valued on an average-cost basis which are adjusted to annual physical counts or estimates under the consumption method of accounting and are recorded in the internal service fund. Prepaid items are items the City has paid in advance and will receive future benefit from. They are recorded under the consumption method in the General Fund, Sundry Grants Special Revenue Fund and Sewer Fund. F. Restricted Assets Fiscal agents acting on behalf of the City hold investment funds arising from the proceeds of long-term debt issuances. The funds may be used for specific capital outlays or for the payment of certain bonds, certificate of participation or tax allocation bonds and have been invested only as permitted by specific State statutes or applicable City ordinance,resolution or bond indenture. G. Interfund Transactions Activity between funds that are representative of lendingiborrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" or "advances to/from other funds" (i.e., the current portion of interfund loans). Any residual balances outstanding between the governmental activities and businesstype activities are reported in the Governmental-Wide Financial Statements as"internal balances." H. Capital Assets Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not available. Donated capital assets are valued at their estimated fair market value on the date donated. City policy has set the capitalization threshold for reporting capital assets at $10,000 for equipment and$100,000 for infrastructure. Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows: Buildings 50 years Improvements other than buildings 50 years Machinery and equipment 5-12 years Infrastructure 30-75 years 2015-02-17 Agenda Packet 59 Page 229 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 1—Reporting Entity and Summary of Significant Accounting Policies (Continued) K Capital Assets (Continued) The City defines infrastructure as the basic physical assets that allow the City to function. The assets include: ➢ Street system ➢ Sewer system ➢ Site amenities such as parking and landscaped areas used by the City in the conduct of its business Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curbs and gutters, sidewalks, medians, streetlights, landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems. Interest accrued during capital assets construction, if any, is capitalized for the business-type funds as part of the asset cost. For all infrastructure systems,the City elected to use the Basic Approach for infrastructure reporting. L Compensated Absences Government-Wide Financial Statements For governmental and business-type activities, compensated absences are recorded as expenses and liabilities as incurred. Fund Financial Statements In governmental funds, compensated absences are recorded as expenditures in the years paid, as it is the City's policy to liquidate any unpaid compensated absences at June 30 from future resources, rather than currently available financial resources. The General Fund is typically used to liquidate compensated absences. In proprietary funds, compensated absences are expensed to the various funds in the period they are earned, and such fund's share of the unpaid liability is recorded as a long-term liability of the fund. J. Long-Term Debt Government-Wide Financial Statements Long-term debt and other financial obligations are reported as liabilities in the appropriate funds. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable premium or discount. 2015-02-17 Agenda Packet 60 Page 230 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 1 —Reporting Entity and Summary of Significant Accounting Policies (Continued) J. Long-Term Debt(Continued) Fund Financial Statements The fund financial statements do not present long-term debt but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position. K Property Taxes The County of San Diego,California(County)bills and collects property taxes and remits them to the City according to a payment schedule established by the County. The County's tax calendar is from July 1 to June 30. Property taxes attach as a lien on property on January 1. Taxes are levied on July 1, based on the assessed values as of the lien date, and are payable in two installments: November 1 and February 1 of each year. Property taxes become delinquent on December 10, and April 10, for the first and second installments,respectively. The County is permitted by State law to levy taxes at 1% of full market value (at time of purchase) and can increase the property tax rate no more than 2%per year or the current CPI,whichever is less. The City receives a share of this basic tax levy proportionate to what it received during the years 1980-1981. Property tax revenue is recognized in the fiscal year for which the taxes have been levied, provided the taxes are received within 60 days after the end of the fiscal year. Property taxes received after this date are not considered available as a resource that can be used to finance the current year operations of the City and,therefore,are not recorded as revenue until collected. No allowance for doubtful accounts was considered necessary. L. Public Facilities Financing Interest costs incurred from the date of borrowing to the completion of the improvement project(s)are capitalized,net of interest earnings, on all proprietary fund assets acquired with tax-exempt debt. M. Net Position In governmental-wide and proprietary fund financial statements, Net Position are categorized as follows: Net Investment in Capital Assets — This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of debt that are attributable to the acquisition,construction,or improvement of those assets. Restricted—This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Unrestricted— This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. 2015-02-17 Agenda Packet 61 Page 231 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 1—Reporting Entity and Summary of Significant Accounting Policies (Continued) M. Net Position (Continued) When expenses are incurred for purposes for which both restricted and unrestricted Net Position are available, the City's policy is to apply restricted Net Position first, then unrestricted Net Position as they are needed. N. Fund Balances In governmental fund financial statements,fund balances are categorized as follows: Nonspendable — Items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds. Restricted — Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation. Committed— Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body, and that remain binding unless removed in the same manner. The City Council is considered the highest authority for the City that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance)to remove or revise the limitation. AssiF,ne — Assigned fund balances encompass the portion of net fund resources reflecting the government's intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has by resolution, authorized the Director of Finance to assign fund balances. The council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year's appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above,an additional action is essential to either remove or revise a commitment. Unassi This amount is for any portion of the fund balances that do not fall into one of the above categories. Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed,assigned,and unassigned fund balance). In order to calculate the amounts to report as restricted,committed,assigned,and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government's policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted 2015-02-17 Agenda Packet 62 Page 232 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 1—Reporting Entity and Summary of Significant Accounting Policies (Continued) N. Fund Balances (Continued) fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. O. Spending Policy Government-Wide Financial Statements and the Proprietary Fund Financial Statements When an expense is incurred for purposes for which both restricted and unrestricted Net Position are available,the City's policy is to apply restricted Net Position first. Governmental Fund Financial Statements When expenditures are incurred for purposes where only unrestricted fund balances are available,the City uses the unrestricted resources in the following order: committed,assigned,and unassigned. In November 2009,the City Council adopted a resolution amending the General Fund Reserve Policy to include the following distinct reserve categories: General Fund Operating Reserve,minimum 15%, Economic Contingency Reserve, minimum 5%, and Catastrophic Event Reserves, 3%. The General Fund Operating Reserve represents unrestricted resources available for appropriation by the City Council to address extraordinary needs of an emergency nature. The Economic Contingency Committed Balance represents monies set aside to mitigate service impacts during a significant downturn in the economy which impacts City revenues such as sales tax, property tax, business license tax, etc. The Catastrophic Event Reserves are monies set aside to fund unanticipated expense related to a major disaster in the City and are associated with the City's Disaster Preparedness Program. P. Use of Estimates The preparation of basic financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures.Actual results could differ from these estimates and assumptions. Q. Accounting Changes In March 2012, the GASB issued Statement No. 65, Items Previously Reported as Assets and Liabilities, which is intended to clarify the appropriate reporting of deferred outflows of resources and deferred inflows of resources to ensure consistency in financial reporting. The City has fully confirmed to the requirements of this statement for the fiscal year ending June 30, 2014. 2015-02-17 Agenda Packet 63 Page 233 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 1—Reporting Entity and Summary of Significant Accounting Policies (Continued) Q. Accounting Changes (Continued) In March 2012, the GASB issued Statement No. 66, Technical Corrections - 2012- an amendment of GASB Statements No. 10 and No. 62, to resolve conflicting accounting and financial reporting guidance that could diminish the consistency of financial reporting. This statement amends Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, by removing the provision that limits fund-based reporting of a state and local government's risk financing activities to the general fund and the internal service fund type. This statement also amends Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements by modifying the specific guidance on accounting for (1) operating lease payments that vary from a straight-line basis, (2) the difference between the initial investment (purchase price) and the principal amount of a purchased loan or group of loans, and (3) servicing fees related to mortgage loans that are sold when the stated service fee rate differs significantly from a current (normal) servicing fee rate. The City has fully confirmed to the requirements of this statement for the fiscal year ending June 30, 2014. In June 2012, the GASB issued Statement No. 67, Financial Reporting for Pension plans — an amendment of GASB Statement No. 25, to improve the financial reporting requirements by state and local governmental pension plans. This statement replaces the requirements of Statements No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans, and Statement No. 50, Pension Disclosures, as they relate to pension plans that are administered through trusts or equivalent arrangements that meet certain criteria. The City has fully confirmed to the requirements of this statement for the fiscal year ending June 30, 2014. In April 2013, the GASB issued Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees, which provides accounting and financial reporting guidance to state and local governments that offer nonexchange financial guarantees and for governments that receive guarantees on their obligations. The City has fully confirmed to the requirements of this statement for the fiscal year ending June 30, 2014. The following GASB statements will be evaluated and implemented in fiscal year 2015. The impact on the City has not been determined. • In June 2012,the GASB issued Statement No. 68, Accounting and Financial Reporting for Pensions - an amendment of GASB Statement No. 27, to improve the guidance for accounting and reporting on the pensions that governments provide to their employees. 2015-02-17 Agenda Packet 64 Page 234 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 1—Reporting Entity and Summary of Significant Accounting Policies (Continued) Q. Accounting Changes (Continued) Key changes include: The statement relates to accounting and financial reporting and does not apply to how governments approach the funding of their pension plans. At present, there generally is a close connection between the way many governments fund pensions and how they account for and report information about them in financial statements. The statement would separate how the accounting and financial reporting is determined from how pensions are funded. Application of Statement 68 is effective for the City's fiscal year ending June 30, 2015. • Separating how the accounting and financial reporting is determined from how pensions are funded, requiring more extensive note disclosures and required supplementary information. • Employers with defined benefit pension plans will recognize a net pension liability, as defined by the standard, in their government-wide, proprietary and fiduciary fund financial statements. • Incorporating ad hoc cost-of-living adjustments and other ad hoc post-employment benefit changes into projections of benefit payments, if an employer's past practice and future expectations of granting them indicate they are essentially automatic. • Using a discount rate that applies (a) the expected long-term rate of return on pension plan investments for which plan assets are expected to be available to make projected benefit payments, and (b) a yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher to projected benefit payments to the extent that the conditions in(a)are not met. • Adopting a single actuarial cost allocation method - entry age normal - rather than the current choice among six actuarial cost methods. • In January 2013, the GASB issued Statement No. 69, Government Combinations and Disposals of Government Operations, which provides new accounting and financial reporting standards for government mergers and acquisitions and for government operations that have been transferred or sold. Application of this statement is effective for the City's fiscal year ending June 30, 2015. • In November 2013, the GASB issued Statement No. 71, Pension Transition for Contributions made Subsequent to the Measurement Date-an amendment of GASB Statement No. 68, which provides guidance to state and local governments clarifying the transition provisions for GASB No. 68 regarding pension contributions made after the measurement date. Application of this statement is effective for the City's fiscal year ending June 30, 2015. 2015-02-17 Agenda Packet 65 Page 235 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 2—Cash and Investments The following is a summary of pooled cash and investments,including cash and investments with fiscal agents at June 30,2014. Government-Wide Statement of Net Position Fiduciary Funds Governmental Business-Type Statement of Activities Activities Total Net Position Total Cash and investments $ 140,596,163 $ 78,867,975 $ 219,464,138 $ 23,376,550 $ 242,840,688 Restricted cash and investments: Held by City 755,411 - 755,411 - 755,411 Held by fiscal agents 9,009,495 - 9,009,495 135,192,084 144,201,579 Total restricted cash and investments 9,764,906 - 9,764,906 135,192,084 144,956,990 Total cash and investments $ 150,361,069 $ 78,867,975 $ 229,229,044 $ 158,568,634 $ 387,797,678 Cash,cash equivalents and investments consisted of the following at June 30, 2014: Petty cash $ 8,575 Deposits with financial institution 49,915,857 Investments 193,671,667 Investments held by bond trustee 144,201,579 Total cash and investments $ 387,797,678 A. Deposits The carrying amount of the City's cash deposits were $49,915,857 at June 30, 2014. Bank balances before reconciling items were $44,654,258 at that date, the total amount of which was insured or collateralized with securities held by the pledging financial institutions in the City's name as discussed below. The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name. The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City,however,has not waived the collateralization requirements. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund. 2015-02-17 Agenda Packet 66 Page 236 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 2—Cash and Investments(Continued) B. Investments As of June 30,2014,the City had the following investments and maturities: Investment Maturities Investment Type Fair Value 1 year or fewer 1-2 years 2-3 years 3-4 years 4-5 years Over 5 years LAIF $ 36,522,568 $ 36,522,567 $ $ $ $ $ Time Deposits 310,000 310,000 San Diego County Investment Pool 39,344,569 39,344,569 CalTrust Short-term Fund 1,013,610 1,013,610 Federal Home Loan Bank 24,872,410 - 4,002,160 8,982,390 11,887,860 Federal National Mortgage Association 27,853,380 - 12,971,310 14,882,070 Federal Home Loan Mortgage Corporation 23,840,070 - - 20,831,970 3,008,100 Federal Farm Credit Bank 39,915,060 3,000,870 23,987,010 12,927,180 - - Held by bond trustee: Investment Agreements 13,538,230 - - 1,628,278 11,909,953 Mutual Funds 130,558,304 130,558,304 - - Cash with Fiscal Agent 105,045 105,045 - Total $337,873,246 $ 210,854,965 S 4,002,160 S 45,940,710 S 62,157358 S 3,008,100 $11,909,953 Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City,rather than the general provisions of the California Government Code or the City's investment policy. 2015-02-17 Agenda Packet 67 Page 237 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 2—Cash and Investments (Continued) B. Investments(Continued) Maximum Maximum Maximum Percentage of Investment in One Authorized Investment Type Maturity Portfolio* Issuer Bankers'Acceptance 180 days 40% 30% Negotiable Certificates of Deposits 5 years 30% 5% Commercial Paper 270 days 25% 10% State and Local Agency Bond Issues 5 years None 10% U.S.Treasury Obligations 5 years None None U.S.Agency Securities 5 years None None Repurchase Agreement 90 days None 10% Reverse-Purchase Agreements 92 days 20% 10% Medium-Term Corporate Notes 5 years 30% 10% Time Certificates of Deposits 3 years None 10% Money Market Funds N/A 15% 10% Local Agency Investment Fund(LAIF) N/A None $50 Million** Investment Trust of California(CalTrust) N/A None 10% *Excluding amounts held by bond trustee that are not subject to California Government **Maximum is$50 million per account Investments Authorized by Debt Agreements Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreement rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk. Maximum Maximum Maximum Percentage of Investment in One Authorized Investment Type Maturity Portfolio Issuer U.S Treasury Obligations None None None Federal Home Loan Mortgage Corporation None None None Farm Credit Banks None None None Federal Home Loan Banks None None None Federal National Mortgage Association None None None Student Loan Marketing Association None None None Financing Corporation None None None Resolution Funding Corporation None None None Certificates of Deposits,Time Deposits and Bankers'Acceptance 30 days None None Commercial Paper 270 days None None Money Market Funds None None None State Obligations None None None Municipal Obligations None None None Repurchase Agreements None None None Investment Agreements None None None Local Agency Investment Fund(LAIF) None None None 2015-02-17 Agenda Packet 68 Page 238 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 2—Cash and Investments(Continued) C. Risks Disclosures Interest Rate Risk As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy provides that final maturities of securities cannot exceed five years. Specific maturities of investments depend on liquidity needs. At June 30, 2014, the City's pooled cash and investments had the following maturities: Percentage of Maturity Investment Less than one year 41% 1 -2 years 2% 2-3 years 24% 3-4 years 31% 4-5 years 2% The weighted average maturity of the portfolio was 2.5 years. Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. To be eligible to receive City money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California's communities, including low-and moderate income neighborhoods. The City's investments are rated by the nationally recognized statistical rating organizations as follows: Standard Investment Type Fair Value Moody's &Poor's LAIF $ 36,522,568 Not Rated Not Rated Time Deposits 310,000 Not Rated Not Rated San Diego County Investment Pool 3953445569 Not Rated AAAf CalTrust Short-Term Fund 150135610 Not Rated Aaf Federal Home Loan Bank 2458725410 Aaa AAA Federal National Mortgage Association 2758535380 Aaa AAA Federal Home Loan Mortgage Corp. 2358405070 Aaa AAA Federal Farm Credit Bank 3959155060 Aaa AAA $193,671,667 2015-02-17 Agenda Packet 69 Page 239 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 2—Cash and Investments(Continued) C. Risks Disclosures (Continued) Custodial Credit Risk Custodial credit risk is the risk that,in the event of the failure of the counter party,the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside parry. All securities, with the exception of LAIF and other pooled investments, are held by a third-party custodian (BNY Western Trust). BNY is a registered member of the Federal Reserve Bank. Concentration of Credit Risk The City's investment policy contains limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer that represent 5%or more of total City's investments are as follows: Issuer Investment Type Fair Value Federal Home Loan Bank Federal Agencies $ 24,872,410 Federal National Mortgage Association Federal Agencies 27,853,380 Federal Home Loan Mortgage Corporation Federal Agencies 23,840,070 Federal Farm Credit Bank Federal Agencies 39,915,060 D. Investments in Local Agency Investment The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City's investments in LAIF at June 30, 2014 included a portion of pool funds invested in Structure Notes and Asset-Backed Securities: Structured Notes are debt securities (other than asset-backed securities) whose cash-flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options. Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables. As of June 30, 2014, the City had $36,522,568 invested in LAIF, which had invested 1.86% of the pool investment funds in Structured Notes and Asset-Back Securities. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. The City valued its investments in LAIF as of June 30, 2014, by multiplying its account balance with LAIF times a fair value factor determined by LAIF. This fair value factor was determined by dividing all LAIF participants' total aggregate amortized cost by total aggregate fair value.The credit quality rating of LAIF is unrated as of June 30,2014. 2015-02-17 Agenda Packet 70 Page 240 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 3—Receivables A. Taxes Receivable At June 30,2014,the City had the following taxes receivable: Governmental Activities Sales Tax $ 3,702,381 Highway Users Tax 744,532 Property Tax 327,278 Utilities Users Tax 720,257 Transient Occupancy Tax 355,529 Franchise Fee Tax 2,272,844 Other takes 296,944 Total $ 8,419,765 B. Loans Receivable At June 30,2014,the City had the following loans receivable,including principal and accrued interest: Governmental Activities Principal Deferred Interest Total South Bay Community Services $ 3,880,291 $ 2,350,243 $ 6,230,534 Heritage(South Bay Community Villas L.P.) 4,400,000 960,745 5,360,745 Girls and Boys Club Construction Loan 56,250 - 56,250 Rancho Vista Housing(Chelsea Investment Corporation) 1,500,000 443,219 1,943,219 St.Regis Park(Chelsea Investment Corp) 1,387,152 1,167,102 2,554,254 Chula Vista Rehabilitation CHIP Loans 1,920,505 159,733 2,080,238 Park Village Apts(Civic Center Barrio Housing Corporation) 184,129 - 184,129 Mobile Home Assistance Programs 36,105 - 36,105 Los Vecinos(Wakeland Housing and Development Corporation) 5,680,000 1,801,732 7,481,732 Main Plaza(Alpha III Development Inc.) 1,800,000 498,814 2,298,814 Seniors on Broadway(MAAC Project) 3,511,194 858,457 4,369,651 The Landings(Chelsea Investment Corp) 9,306,076 685,954 9,992,030 First Time Home Buyers Program 1,425,504 - 1,425,504 Neighborhood Stabilization First Time Home Buyer Program 210,800 - 210,800 NSP Rental Housing Program 1,000,000 122,634 1,122,634 Community Energy Retrofit Program 175,208 - 175,208 Lofts on Landis 1,850,000 23,432 1,873,432 Total $ 38,323,214 $ 9,072,065 $ 47,395,279 South Bay Community Services In 1998,the former Chula Vista Redevelopment Agency (RDA) entered into several loan agreements with South Bay Community Services, a California non-profit public benefit corporation. Prior years' loan was made to South Bay Community Services for the purpose of purchasing a 14-unit apartment building. In fiscal year 1998, a loan to fund the Trolley Terrace 13-unit project and the Cordova 2015-02-17 Agenda Packet 71 Page 241 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 3—Receivables(Continued) B. Loans Receivable(Continued) South Bay Community Services (Continued) Village 40-unit project were made. These projects are to provide housing to very low-income families. The funds were made available to the City through a drawdown from the U.S. Department of Housing and Urban Development. Included in the current year balance is the $887,995 loaned by the RDA. Deeds of trust and assignments of rent secure the notes. Principal and interest are payable annually out of any and all residual receipts derived from the property and/or operation of the property. Fund balance has been restricted in the Sundry Grants Special Revenue Fund and in the Low&Moderate Income Housing Successor Special Revenue Fund. Interest accrues annually on the unpaid balance with rates ranging from 3% to 6%. At June 30, 2014, the outstanding balance of the loan was$6,230,534,which included a deferred interest accrual of$2,350,243. Heritage (South Bay Community Villas,L.P.) In 2002, the RDA entered into a loan agreement with South Bay Community Villas, L.P. for the development of the Heritage Town Center multi-family rental housing project. The RDA's assistance is in the form of residual receipt loan secured by a promissory note and deed of trust. The outstanding principal and interest on the loan will be repaid over fifty five years and accrues interest at 3% per annum. Payment of principal and interest on the loan is made on an annual basis, out of a fund equal to fifty percent of the net cash flow of the project (residual receipts) after debt service on bonds, payment of deferred developer fees, and reasonable operating expenses have been paid. Fund balance has been restricted in the Low and Moderate Income Housing Successor Special Revenue Fund. At June 30, 2014,the outstanding balance of the loan was $5,360,745 which included a deferred interest accrual of$960,745. Girls and Boys Club Construction Loan The City has made a loan of$250,000 for construction of a new facility for the Boys and Girls Club. The loan is interest free and will be repaid with equal annual payments over 20 years, starting in February 1999. Fund balance has been restricted in the General Fund. At June 30, 2014, the outstanding balance of the loan was$56,250. Rancho Vista Housing(Chelsea Investment Corporation) In 2000, the City and RDA loaned $1,500,000 to CIC Eastlake, L.P. for the development and operation of Rancho Vista Housing project, a multifamily affordable housing project. The loan is secured by promissory notes and a deed of trust. The outstanding principal on the loan is to be repaid over fifty-five (55) years and interest accrues at the simple interest rate of three (3%) percent per annum on unpaid principal.Payment of principal and interest, or portions thereof, on the loan is made on an annual basis, out of a fund equal to fifty (50%) percent of the net cash flow of the project. At June 30, 2014,the outstanding balance of the loan was $1,943,219 which included a deferred interest accrual of$443,219. 2015-02-17 Agenda Packet 72 Page 242 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 3—Receivables(Continued) B. Loans Receivable(Continued) St. Reds Park(Chelsea Investment Corporation) In 2000, the RDA entered into a loan agreement with Chelsea Investment Corporation for the acquisition and rehabilitation of the 119-unit Pear Tree Apartments at 1025 Broadway. All units are affordable to low-income households. The loan is secured by a Deed of Trust and will accrue 6% interest for 52 years. Payment of principal and interest is made on an annual basis out of a fund equal to 90% of the residual receipts. At June 30, 2014,the outstanding balance of the loan was $2,554,254 which included a deferred interest accrual of$1,167,102. Chula Vista Rehabilitation CHIP Loans The Chula Vista Rehabilitation Community Housing Improvement Program (CHIP) is under the direct control of the RDA. CHIP offers deferred and low interest rate home improvement loans to qualified borrowers residing within a target area. Loan repayments are re-deposited into the program cash accounts and are redistributed as future loans. Fund balance has been restricted in the Sundry Grants Special Revenue Fund, Housing Program Special Revenue Fund and in the Low & Moderate Housing Successor Special Revenue Fund. At June 30, 2014, the outstanding balance of the loan was $2,080,238 which included a deferred interest accrual of$159,733. Park Village Apartments (Civic Center Barrio Housing Corporation) In 1991, the RDA entered into a loan agreement with the Civic Center Barrio Housing Corporation, a California non-profit public benefit corporation. The loan was made for the purchase of land and the development of a 28- unit low-income housing project. During 1992, the loan was assigned to Park Village Apartments Ltd., a California limited partnership in which Civic Center Barrio Housing Corporation is the managing general partner. The loan is secured by a deed of trust on the property and assignment of rents. Principal and interest are payable monthly. In 2009, a second amendment to the loan was entered into changing the interest from 5% to 3% per annum on the unpaid principal balance of the note. Fund balance has been restricted in the Low and Moderate Income Housing Successor Special Revenue Fund. At June 30, 2014, the outstanding balance of the loan was $184,129. Mobile Home Assistance Programs The RDA entered into agreements with eligible residents of the Orange Tree Mobile home Park, whereby the RDA loaned $250,030 as permanent financing assistance to residents for the purpose of purchasing certain mobile home property. The loans are secured by deeds of trust on the property and mature in 2017 or when the property is sold. Contingent interest will be charged based on calculations specified in the agreement. Fund balance has been restricted in the Low and Moderate Income Housing Successor Special Revenue Fund. At June 30, 2014, the outstanding balance of the loan was $36,105. 2015-02-17 Agenda Packet 73 Page 243 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 3—Receivables(Continued) B. Loans Receivable(Continued) Los TVecinos (Wakeland Housing and Development Corporation) In 2008, the RDA entered into a loan agreement with Wakeland Housing and Development Corporation to assist the borrower in constructing 41 affordable multifamily units for occupancy by extremely low, very low and lower income households. The loan amount of$5,680,000 was funded by the Low&Moderate Income Housing Successor Special Revenue Fund. The loan bears an interest rate of 5% per annum. Principal and interest payments will be made on an annual basis out of a fund equal to 50% of the residual receipts for years 1-30 and 75% of the residual receipts for years 31-54, until 55 years from the date the improvements are placed in service, at which time, all principal and unpaid interest is due and payable. The improvements were placed in service on February 7, 2008. At June 30, 2014,the outstanding balance of the loan was $7,481,732 which included a deferred interest accrual of$1,801,732. Main Plaza(Alpha III Development Inc.) In 2003, the RDA entered into a loan agreement with Main Plaza, LP to assist in acquiring and improving certain real property for occupancy by very low, low, and moderate income households. The loan bears an interest rate of 3% per annum. The loan is due and payable on the date that is 55 years from the date of the RDA's issuance of the Certificate of Completion, which is in 2061. At June 30, 2014,the outstanding balance of the loan was $2,298,814 which included a deferred interest accrual of$498,814. Seniors on Broadway W14 Proiect) The RDA entered into a loan agreement with Seniors on Broadway, Limited Partnership to assist in acquiring and improving certain real property for occupancy by very low, low, and moderate income households. The loan bears an interest rate of 3%per annum. The loan is due and payable on the date that is 55 years from the date of the RDA's issuance of the Certificate of Completion. At June 30, 2014,the outstanding balance of the loan was $4,369,651 which included a deferred interest accrual of$858,457. The Landings (Chelsea Investment Corporation) The RDA entered into a loan agreement with CIC Landings, L.P. to assist the borrower in constructing 92 affordable multifamily apartment units for occupancy by extremely low,very low and lower income households. The loan bears an interest rate of 3% per annum. The loan is due and payable each and every year commencing with the first anniversary of the issuance of the Certificate of Completion by the City in an amount equal to 50% of the residual receipts. At June 30, 2014, the outstanding balance of the loan was $9,992,030 which included a deferred interest accrual of $685,954. 2015-02-17 Agenda Packet 74 Page 244 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 3—Receivables(Continued) B. Loans Receivable(Continued) First Time Home Buyers program The Chula Vista First-Time Homebuyer Program is under the direct control of the Housing Authority and funded through U.S. Department of Housing and Urban Development HOME funds. Currently administered by Community HousingWorks, the program offers equity share deferred home gap financing loans to qualified borrowers. Loan repayments are re-deposited into the program and are redistributed as future loans. Fund balance has been restricted in the Sundry Grants Special Revenue Fund.At June 30,2014,the outstanding balance of the loan was$1,425,504. Neighborhood Stabilization First Time Home Buyers program The Chula Vista Neighborhood Stabilization First-Time Homebuyer Program and Neighborhood Stabilization Resale Program are under the direct control of the Agency and funded through U.S. Department of Housing and Urban Development Neighborhood Stabilization funds. Currently administered by Community HousingWorks, the Program offers equity share deferred home gap financing loans to qualified borrowers and an acquisition, rehabilitation, and resale option to those qualifying in targeted areas. Loan repayments are re-deposited into the program cash accounts and are redistributed as future loans. Fund balance has been restricted in the Sundry Grants Special Revenue Fund.At June 30,2014,the outstanding balance of the loan was$210,800. NSP Rental Housing proms The RDA entered into a loan agreement with San Diego Community Housing Corporation to acquire and rehabilitate rental housing for very low income households. The loan is secured by promissory notes and a deed of trust. The outstanding principal and interest amount of the loan will be repaid over fifty-five (55)years and shall accrue at the simple interest rate of three (3%)percent per annum. Principal and interest are payable annually out of a fund equal to 50% of residual receipts derived from the property and/or operation of the property. Fund balance has been restricted in the Sundry Grants Special Revenue Fund. At June 30, 2014, the outstanding balance of the loan was $1,122,634 which included deferred interest accrual of$122,634. Community Retrofit program The Chula Vista Community Energy Revolving Loan Fund (RLF) is under the direct control of the City of Chula Vista and was capitalized through the American Recovery & Reinvestment Act. The RLF offers fully amortized low-interest rate home energy improvement loans to qualified borrowers residing within Chula Vista. The loans are secured by a deed of trust on the properties. Principal and interest are payable monthly. Interest accrues annually on the unpaid principal balance of the notes. Loan repayments are re-deposited into the program cash accounts and are redistributed as future loans except for loans funded by General fund. Fund balance has been restricted in the General Fund and Sundry Grants Special Revenue Fund. At June 30, 2014, the outstanding balances of the loans were $9,204 and$166,004,respectively. 2015-02-17 Agenda Packet 75 Page 245 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 3—Receivables(Continued) B. Loans Receivable(Continued) Lofts on Landis The City has adopted a Housing Element of the General Plan which sets forth the objective of providing balances and varied housing opportunities throughout the City to satisfy needs and desires of various age, income and ethnic groups of the community. The Housing Authority found that the City's financial participation in the development of the Landis Project will be a sound investment based upon the Developer' ability to effectively service the City's housing needs and priorities expressed in the housing Element and Consolidated plan. At June 30, 2014, the outstanding balance of the loan was$1,873,432 which included a deferred interest accrual of$23,432. Note 4—Interfund Balances and Transactions Due to/Due from other funds At June 30,2014,interfund receivables and payables were as follows: Due To Other Funds Nonmajor Governmental Due from Other Funds Sundry Grants Funds Total General Fund $ 2,197,028 $ 740,466 $2,937,494 Total $ 2,197,028 $ 740,466 $2,937,494 Current interfund balances arise in the normal course of operations to cover cash shortages and are expected to be repaid shortly after the end of the fiscal year. Long-Term Advances At June 30, 2014,balances were as follows: Advances From Other Funds Nonmajor City Debt Proprietary Advances to Other Funds Service Fund Funds Total General Fund $ 1,661,076 $ - $ 1,661,076 Developer hnpact Capital Projects Fund 10,740,681 - 10,740,681 Park Acquisition Development Fund 10,147,581 - 10,147,581 Sewer Enterprise Fund 14,733,931 4,228,226 18,962,157 Total $ 37,283,269 $ 4,228,226 $ 41,511,495 2015-02-17 Agenda Packet 76 Page 246 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 4—Interfund Balances and Transactions Lon;-Term Advances (Continued) City Council authorized loans to the Public Facilities DIF in the amount of 1,528,969.00 to help fund the Civic Center expansion. The loan will be repaid as funds become available, through the payment of DIF fees by developers. The balance was$1,661,076 at June 30,2014. City Council authorized loans to Public Facilities DIF for$12,950,160 and Western DIF for$36,094. The Public Facilities DIF loan for $5,200,000 is due and payable in 13 years, with the first payment due in fiscal year 2012/2013 at an interest rate of 3.80% based on the pooled investment rate. The Public Facilities DIF loan for$5,300,000 is due and payable in 13 years,with the first payment due in fiscal year 2013 at an interest rate of 0.56%based on the pooled investment rate. City Council authorized a loan to Western PAD from Eastern PAD in the amount of $9,630,000 to acquire the 14.41 acre site located in the lower Sweetwater Valley owned by the Redevelopment Agency and $310,000 to acquire the 1.89 acre site located at Auto Park Place, Chula Vista. The loan will be repaid as funds become available, through the payment of PAD fees by developers in western Chula Vista. The balance was $10,147,581 at June 30,2014. The City Council authorized loans with indefmite terms from the Trunk Sewer fund to Salt Creek for $16,848,381, to the Storm Drain fund for $744,612, and $803,331 from the Sewer Facility fund for capital improvement projects. Transfers In/Out Interfund transfers for the year ended June 30,2014 were as follows: Transfers In Sundry Grants Public City Non-major Nonmajor Governmental General Special Financing Debt Governmental Enterprise Activities Transfer Out Fund Revenue Fund Authority Service Fund Funds Funds Internal Service Foci Total General $ - $ 85,813 $ 9,658,967 $ - $ 3,278,344 $ 611,358 $ 600,000 $ 14,234,482 Sundry Grants Special Revenue 264,826 - 752,752 - - 1,017,578 Development Impact Fund 2,715 - 430,928 5,677,936 - - 6,111,579 City Debt Service Fund - - 36,851 - - - 36,851 Public Finance Authority 271,002 271,002 Nonmajor Governmental Fund 5,096,693 - 100,001 635,574 - - 5,832,268 Sewer Fund 2,774,326 2,774,326 Nonmajor Enterprise Funds 1,161,738 - 249,999 - 16,823 - 1,428,560 Internal Service Fund - - - - - 23,701 - 23,701 Total $9,571,300 $ 85,813 $ 9,658,967 $ 817,779 $ 10,344,606 $ 651,882 $ 600,000 $ 31,730,347 General Fund- Operating support to reimburse the General Fund for City staff services and equipment. Total amount of reimbursement was$9,571,300. Sundry Grants Special Revenue Fund— Transferring the General Fund's matching contribution to the federal grants in the amount of$85,813. 2015-02-17 Agenda Packet 77 Page 247 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 4—Interfund Balances and Transactions (Continued) Public Financing Authority - Funding debt service funds for repayment of various long-term obligations amounted to$9,658,967. City Debt Service - Funding debt service funds for repayment of various long-term obligations amounted to$817,779. Non-maior Governmental Funds - Funding debt service funds for repayment of various long-term obligations and to fund various capital improvement projects amounted to $11,611,121. Transfer from General Fund to the Residential Construction Tax Fund for debt service expense in the amount of $375,000 and funding the TUT Common Fund in the amount of$8,017,453. Non-major Enterprise Funds — Permit subsidies from the General Fund to the Development Services Fund in the amount of $579,358. Operating support to reimburse the Development Services Fund for services provided, $32,000 reimbursement from the General Fund & $16,823 from Sewer Services. Central Garage reimbursement to Chula Vista Transit Fund was $23,701. Internal Service Funds - $600,000 was transferred to the Technology Replacement Fund from the General Fund for the future purchase of Police radio equipment. The purchase of this equipment will allow the Police Department to begin the transition to the to the County's updated regional radio system, ensuring the Police Department's continued regional interoperability. 2015-02-17 Agenda Packet 78 Page 248 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 5—Capital Assets A. Government-Wide Financial Statements Summary of changes in capital assets for governmental activities for the year ended June 30,2014 are as follows: Balance CIP Balance July 1,2013 Additions Deletions Transfers June 30,2014 Capital assets,not being depreciated: Land $ 76,308,011 $ 57,445 $ (31,097) $ - $ 76,334,359 Construction in progress 20,278,877 10,016,252 - (7,067,646) 23,227,483 Total capital assets,not being depreciated 96,586,888 10,073,697 (31,097) (7,067,646) 99,561,842 Capital assets,being depreciated: Buildings 212,628,874 147,715 212,776,589 Improvements other than buildings 129,569,741 - 129,569,741 Machinery and equipment 31,741,318 2,075,300 (4,772,583) - 29,044,035 Infrastructure 653,796,311 15,269,915 - 7,067,646 676,133,872 Subtotal 1,027,736,244 17,492,930 (4,772,583) 7,067,646 1,047,524,237 Less accumulated depreciation Buildings (47,630,080) (4,254,993) - (51,885,073) Improvements other than buildings (41,048,007) (2,745,999) - (43,794,006) Machinery and equipment (28,283,210) (1,628,607) 4,709,729 (25,202,088) Infrastructure (238,327,657) (18,160,511) - (256,488,168) Subtotal (355,288,954) (26,790,110) 4,709,729 (377,369,335) Total capital assets,being depreciated 672,447,290 (9,297,180) (62,854) 7,067,646 670,154,902 Total governmental activities $ 769,034,178 $ 776,517 $ (93,951) $ - $ 769,716,744 Depreciation expense was charged to functions/programs as follows: General government $ 1,605,101 Public safety 2,754,114 Public works 19,272,405 Parks and recreation 2,660,467 Library 243,599 Internal service 254,424 $ 26,790,110 2015-02-17 Agenda Packet 79 Page 249 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 5—Capital Assets(Continued) A. Government-Wide Financial Statements(Continued) Summary of changes in capital assets for business-type activities for the year ended June 30,2014, are as follows: Balance CIP Balance July 1,2013 Additions Deletions Transfers June 30,2014 Capital assets,not being depreciated: Construction in progress $ 2,195,269 $ 581,633 $ $(203,923) $ 2,572,979 Total capital assets,not being depreciated 2,195,269 581,633 (203,923) 2,572,979 Capital assets,being depreciated: Machinery and equipment 13,287,329 162,068 (746,975) - 12,702,422 Infrastructure 227,718,283 6,822,903 - 203,923 234,745,109 Subtotal 241,005,612 6,984,971 (746,975) 203,923 247,447,531 Less accumulated depreciation Machinery and equipment (11,972,259) (520,061) 736,435 - (11,755,885) Infrastructure (96,567,368) (5,183,989) - (101,751,357) Subtotal (108,539,627) (5,704,050) 736,435 (113,507,242) Total capital assets,being depreciated 132,465,985 1,280,921 $ (10,540) 203,923 133,940,289 Total governmental activities $134,661,254 $1,862,554 $ (10,540) $ - $136,513,268 Depreciation expense for business-type activities for the year ended June 30,2014,are as follows: Sewer $ 5,340,593 Transit 303,457 Sewer DIFS 60,000 $ 5,704,050 2015-02-17 Agenda Packet 80 Page 250 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 5—Capital Assets(Continued) B. Fiduciary Funds Financial Statements Summary of changes in capital assets for fiduciary funds for the year ended June 30,2014,are as follows: Balance CIP Balance July 1,2013 Additions Deletions Transfers June 30,2014 Capital assets,not being depreciated: Land $ 9,502,300 $ - $ - $ - $ 9,502,300 Total capital assets,not being depreciated 9,502,300 - - - 9,502,300 Capital assets,being depreciated: Buildings 2,386,218 - - - 2,386,218 Subtotal 2,386,218 - - - 2,386,218 Less accumulated depreciation Buildings (1,158,569) (47,724) - - (1,206,293) Subtotal (1,158,569) (47,724) - - (1,206,293) Total capital assets,being depreciated 1,227,649 (47,724) - - 1,179,925 Total governmental activities $10,729,949 $ (47,724) $ - $ - $10,682,225 Depreciation expense for fiduciary funds for the year ended June 30,2014, was $47,724. Note 6—Long-Term Debt Governmental Activities Long-Term Debt A summary of changes in governmental activities long-term debt for the year ended June 30,2014, is as follows: Classification Balance Debt Debt Balance Due within Due in More June 30,2013 ]Issued Retired June 30,2014 One Year Than One Year Certificate of Participation $ 128,375,000 $45,920,000 $(52,645,000) $121,650,000 $4,060,000 $ 117,590,000 Section 108 Loan 8,262,000 - (349,000) 7,913,000 367,000 7,546,000 Notes Payable 6,407,666 - (692,754) 5,714,912 681,344 5,033,568 Capital Leases 279,913 2,121,500 (354,101) 2,047,312 153,751 1,893,561 Bond Premium 24,807 3,537,111 (119,085) 3,442,833 - 3,442,833 Bond Discount (791,689) - 40,255 (751,434) - (751,434) Total $ 142,557,697 $ 51,578,611 $(54,119,685) $140,016,623 $5,262,095 $ 134,754,528 2015-02-17 Agenda Packet 81 Page 251 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 6—Long-Term Debt(Continued) Governmental Activities Long-Term Debt(Continued) A. Certificates of Participation Classification Balance Debt Debt Balance Due within Due in More June 30,2013 Issued Retired June 30,2014 One Year Than One Year 2002 COP Police Facility $ 49,930,000 $ $(49,930,000) $ $ $ 2003 Refunding COP 220,000 (220,000) - 2004 COP Civic Ctr Phl 31,380,000 (950,000) 30,430,000 985,000 29,445,000 2006 COP Civic Ctr Ph2 17,490,000 (530,000) 16,960,000 550,000 16,410,000 2010 Refunding COP Corp Yard 29,355,000 (1,015,000) 28,340,000 1,055,000 27,285,000 2014 Refunding COP - 45,920,000 45,920,000 1,470,000 44,450,000 Total $ 128,375,000 $45,920,000 S(52,645,000) $ 121,650,000 $4,060,000 $ 117,590,000 2002 COP Ill June 2002, the Chula Vista Public Financing Authority issued $60,145,000 in 2002 Certificates of Participation to provide funds to construct the City's Police Headquarters,finance the reserve account of the certificates, to capitalize interest during construction and to pay the cost of issuance of the certificates. The source of repayment of the certificates is the lease payments to be made by the City to the Authority. Interest is payable semiannually on February 1 and August 1 of each year commencing February 1, 2003. The certificates mature in 2032 and principal is payable on August 1 each year commencing August 1, 2005. As of June 30, 2014,the outstanding balance is $0. This was refunded by the 2014 Refunding COP. 2003 Refunding Ill May 2003, the Chula Vista Public Financing Authority (the "Financing Authority") issued its 2003 Refunding Certificates of Participation to defease the 1993 Certificates, reimburse the City for amounts it has advanced to prepay the equipment lease,finance a reserve account and pay for the cost of issuance of the Certificates. The Certificates are to be repaid from lease payments made by the City to the Authority for leasing certain property. Interest is payable semiannually on March 1 and September 1 of each year commencing September 1, 2003. The certificates mature in 2013 and principal is payable on September 1 each year commencing September 1, 2003. As of June 30, 2014, the outstanding balance is$0. 2004 Civic Center Proiect Phase I COP Ill September 2004, the Chula Vista Public Financing Authority (the "Financing Authority") issued $37,240,000 in 2004 Certificates of Participation to provide funding for the first phase of the reconstruction, renovation, and equipping of the City's Civic Center Complex. Proceeds will also be used to finance the reserve account of the certificates,to capitalize interest during construction and to pay the cost of issuance of the certificates. The source of repayment of the certificates is the lease payments to be made by the City to the Authority. Interest is payable semiannually on March 1 and September 1 of each year commencing March 1, 2006. The certificates mature in 2034 and principal 2015-02-17 Agenda Packet 82 Page 252 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 6—Long-Term Debt(Continued) Governmental Activities Long-Term Debt(Continued) A. Certificates of Participation (Continued) 2004 Civic Center Proiect Phase I COP, Continued is payable on September 1 each year commencing September 1, 2006. As of June 30, 2014, the outstanding balance is$30,430,000. The annual debt service requirements for the 2004 Certificates of Participation Civic Center Project Phase I outstanding at June 30,2014,are as follows: Year Encling June 30, Principal Interest Total 2015 $ 985,000 $ 1,406,449 $ 2,391,449 2016 1,025,000 1,369,511 2,394,511 2017 1,065,000 1,328,511 2,393,511 2018 1,110,000 1,285,911 2,395,911 2019 1,155,000 1,240,124 2,395,124 2020-2024 6,550,000 5,413,085 11,963,085 2025-2029 8,180,000 3,785,513 11,965,513 2030-2034 10,360,000 1,604,500 11,964,500 Total $30,430,000 $17,433,604 $47,863,604 2006 Civic Center Proiect Phase II COP In March 2006, the Chula Vista Public Financing Authority (the "Financing Authority") issued $20,325,000 in 2006 Certificates of Participation to provide funds for the construction and equipping of certain improvements to the Civic Center Complex of the City of Chula Vista and other existing City facilities, fund capitalized interest, fund a reserve fund, and pay the costs incurred in connection with the execution and delivery of the Certificates. The source of repayment of the certificates is the lease payments to be made by the City to the Authority. Interest is payable semiannually on March 1 and September 1 of each year, commencing September 1, 2006. The certificates mature in 2036 and principal is payable on March 1 each year, commencing March 1, 2008. As of June 30, 2014, the outstanding balance is$16,960,000. 2015-02-17 Agenda Packet 83 Page 253 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 6—Long-Term Debt(Continued) Governmental Activities Long-Term Debt(Continued) A. Certificates of Participation (Continued) 2006 Civic Center Project Phase II COP, Continued The annual debt service requirements for the 2006 Certificates of Participation Civic Center Project Phase II outstanding at June 30,2014,are as follows: Year Encling June 30, Principal Interest Total 2015 $ 550,000 $ 721,309 $ 1,271,309 2016 570,000 700,959 1,270,959 2017 590,000 679,584 1,269,584 2018 615,000 657,459 1,272,459 2019 635,000 633,628 1,268,628 2020-2024 3,590,000 2,759,873 6,349,873 2025-2029 3,895,000 1,956,563 5,851,563 2030-2034 4,445,000 1,080,006 5,525,006 2035-2036 2,070,000 140,850 2,210,850 Total $ 16,960,000 $ 9,330,231 $ 26,290,231 2010 Refunding COP Corp Yard In February 2010, the Chula Vista Public Financing Authority (Authority) issued $29,355,000 in 2010 Certificates of Participation to provide funds for the construction,reconstruction,modernization and equipping of Phase 3 of the Civic Center Complex of the City of Chula Vista, to refinance the City's outstanding Certificates of Participation Series A of 2000 (2000 Financing Project), fund capitalized interest, fund a reserve fund, and pay the costs incurred in connection with the execution and delivery of the Certificates. The source of repayment of the certificates is the lease payments to be made by the City to the Authority. Interest is payable semiannually on March 1 and September 1 of each year, commencing September 1, 2010. The certificates mature in 2033 and principal is payable on March 1 each year, commencing March 01, 2014. As of June 30, 2014, the outstanding balance is $28,340,000. 2015-02-17 Agenda Packet 84 Page 254 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 6—Long-Term Debt(Continued) Governmental Activities Long-Term Debt(Continued) A. Certificates of Participation (Continued) 2010 Refunding COP Corp Yard, Continued The annual debt service requirements for the 2010 Refunding Certificates of Participation Corp Yard outstanding at June 30,2014,are as follows: Year Ending June 30, Principal Interest Total 2015 $ 1,055,000 $ 1,436,606 $ 2,491,606 2016 1,085,000 1,402,319 2,487,319 2017 1,130,000 1,364,344 2,494,344 2018 1,170,000 1,319,144 2,489,144 2019 1,235,000 1,257,719 2,492,719 2020-2024 7,160,000 5,296,331 12,456,331 2025-2029 9,165,000 3,288,775 12,453,775 2030-2034 6,340,000 741,675 7,081,675 Total $ 28,340,000 $16,106,913 $ 44,446,913 2014 Refunding In February 2014, the Chula Vista Public Financing Authority (Authority) issued $45,920,000 in 2014 Certificates of Participation to refinance the City's outstanding 2002 Certificates of Participation (Police Facility Project, fund a reserve fund, and pay the costs incurred in connection with the execution and delivery of the Certificates. The source of repayment of the certificates is the lease payments to be made by the City to the Authority. Interest is payable semiannually on April 1 and October 1 of each year commencing, October 1, 2014. The certificates mature in 2032 and principal is payable on October 1 each year, commencing October 1, 2014. As of June 30, 2014, the outstanding balance is$45,920,000. 2015-02-17 Agenda Packet 85 Page 255 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 6—Long-Term Debt(Continued) Governmental Activities Long-Term Debt(Continued) A. Certificates of Participation (Continued) 2014 Refunding COP, Continued The annual debt service requirements for the 2014 Certificates of Participation outstanding at June 30,2014,are as follows: Year Ending June 30, Principal Interest Total 2015 $ 1,470,000 $ 2,139,474 $ 3,609,474 2016 1,615,000 1,992,556 3,607,556 2017 1,665,000 1,935,031 3,600,031 2018 1,730,000 1,867,131 3,597,131 2019 1,810,000 1,791,806 3,601,806 2020-2024 10,535,000 7,492,531 18,027,531 2025-2029 13,605,000 4,490,781 18,095,781 2030-2033 13,490,000 1,122,884 14,612,884 Total $ 45,920,000 $ 22,832,194 $ 68,752,194 B. Section 108 Loan In June 2008, the City entered into a Contract for Loan Guarantee Assistance with the U.S. Department of Housing and Urban Development ("HUD") as part of the Section 108 Loan Program in the amount of $9,500,000. The Section 108 Loan is an "advance" of future CDBG entitlement funds and, as such, is repaid with a portion of the City's annual entitlement. Proceeds of the loan will be used to fund multiple capital improvement projects. Debt service payments will be made with future CDBG entitlements for 20 years,with interest payments beginning with fiscal year 2009. As of June 30, 2014, the outstanding balance is $7,913,000. The annual debt service payments are as follows: Year EncEng June 30, Principal Interest Total 2015 $ 367,000 $ 389,175 $ 756,175 2016 385,000 373,243 758,243 2017 404,000 355,858 759,858 2018 425,000 337,118 762,118 2019 446,000 317,126 763,126 2020-2024 2,587,000 1,224,524 3,811,524 2025-2029 3,299,000 460,381 3,759,381 Total $7,913,000 $3,457,425 $11,370,425 2015-02-17 Agenda Packet 86 Page 256 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 6-Long-Term Debt(Continued) Governmental Activities Long-Term Debt(Continued) C. Notes Payable Classification Balance Debt Debt Balance Due within Due in More June 30,2013 Issued Retired June 30,2014 One Year Than One Year The Adamo-Parking Structurc Notc $ 34,657 $ - $ (34,657) $ - $ - $ - Taxablc QECB Lcasc Purchasc Agrccmcnt 2,174,204 - (171,187) 2,003,017 182,660 1,820,357 California Encrgy Commission(CEC)Loan#1 506,020 - (160,733) 345,287 167,144 178,143 California Encrgy Commission(CEC)Loan#2 1,895,345 - (121,208) 1,774,137 124,872 1,649,265 California Encrgy Commission(CEC)Loan#3 1,587,445 - (169,432) 1,418,013 171,131 1,246,882 SDG&E OBF Loan#1(Parkway Boilcr) 68,144 - (8,518) 59,626 8,518 51,108 SDG&E OBF Loan#2(Transit HVAC) 141,851 - (27,019) 114,832 27,019 87,813 Total CEC Loans/SDG&E On Bill Financing 4,198,805 - (486,910) 3,711,895 498,684 3,213,211 Total $ 6,407,666 $ - $(692,754) $ 5,714,912 $ 681,344 $ 5,033,568 The Adamo-Parking Structure Note In January 1994, the City entered into a loan agreement with a private party in order to purchase certain land acquisitions and improvements for the ultimate purpose of constructing a three-level parking structure. The note calls for 240 monthly payments of principal and interest, commencing in April 1994 in the initial amount of$2,548 and increasing 3% percent annually. The annual interest rate is 8.29%.As of June 30,2014,the outstanding balance is$0. Taxable OECB Lease/Purchase Agreement On December 21, 2012, the City entered into a lease purchase agreement with a private party to purchase certain energy conservation equipment. The lease/purchase agreement would bridge the financial gap between the Municipal Street Listing Retrofit Project capital costs and the available rebates for energy conservation equipment. As of June 30, 2014,the outstanding balance is $2,003,017. The annual debt service requirements are as follows: Year Ending June 30, Principal Interest Total 2015 $ 182,660 $ 77,515 $ 260,175 2016 184,323 70,265 254,588 2017 186,000 62,950 248,950 2018 187,693 55,567 243,260 2019 189,401 48,118 237,519 2020-2024 973,176 126,452 1,099,628 2025 99,764 1,975 101,739 Total $2,003,017 $ 442,842 $ 2,445,859 2015-02-17 Agenda Packet 87 Page 257 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 6—Long-Term Debt(Continued) Governmental Activities Long-Term Debt(Continued) C. Notes Payable(Continued) California Enemy Commission Loans/SDG&E On-Bill Financing On September 25, 2007, the City Council approved Resolution 2007-241 authorizing the City's participation in the California Energy Commission ("CEC") and the SDG&E On-Bill Financing program. The loans would bridge the financial gap between energy conservation project capital costs and the available rebates for energy conservation equipment. As of June 30, 2014, the outstanding balance is $3,711,895. D. Capital Leases Classification Balance Debt Debt Balance Due within Due in More June 30,2013 Issued Retired June 30,2014 One Year Than One Year SD County Regional Comm.System $ 279,914 $ - $(279,914) $ - $ - $ - Solar Energy Financing - 2,121,500 (74,188) 2,047,312 153,751 1,893,561 Total $ 279,914 $2,121,500 $(354,102) $ 2,047,312 $ 153,751 $ 1,893,561 SD County Regional Communication System The City has participated in the San Diego County Regional Communications System ("RCS"). The City financed its share of the RCS network infrastructure over 14 years in the amount of$2,809,405. The agreement with the County provided the City with full partnership in the RCS. As of June 30,2014,the outstanding balance is$0. Solar Energy Financing On July 23, 2013, the City Council approved Resolution 2013-149 authorizing the City to utilize a $2,121,500 Tax-Exempt Facility Lease Purchase Agreement with Banc of America, which would be repaid through the annual energy cost savings. The future minimum lease obligation and the net present value of these minimum lease payments as of June 30,2014,are as follows: Year Ending June 30, Principal Interest Total 2015 $ 153,751 $ 79,423 $ 233,174 2016 161,835 73,268 235,103 2017 170,310 66,789 237,099 2018 179,193 59,971 239,164 2019 124,930 52,798 177,728 2020-2031 1,257,294 352,390 1,609,684 Total $2,047,313 $ 684,639 $ 2,731,952 2015-02-17 Agenda Packet 88 Page 258 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 6—Long-Term Debt(Continued) Fiduciary Funds Long-Term Debt A. Tax Allocation Bonds Classification Balance Debt Debt Balance Due within Due in More June 30,2013 Issued Retired June 30,2014 One Year Than One Year 2006 Senior Tax Allocation Refunding Bonds,Series A $ 10,540,000 $ $ (565,000) $ 9,975,000 $ 590,000 $ 9,385,000 2006 Subordinate Tax Allocation Refunding Bonds,Series B 9,820,000 (500,000) 9,320,000 525,000 8,795,000 2008 T al Allocation Refunding Bonds 21,625,000 21,625,000 575,000 21,050,000 Total $ 41,985,000 $ $(1,065,000) $ 40,920,000 $ 1,690,000 $ 39,230,000 2006 Senior Tax Allocation Refunding Bonds, Series A In July 2006, the RDA issued the 2006 Senior Tax Allocation Refunding Bonds, Series A in the amount of $13,435,000 to refinance the RDA's outstanding Bayfront/Town Centre Redevelopment Project 1994 Senior Tax Allocation Refunding Bonds, Series A, and to satisfy the reserve requirement for the Bonds and provide for the costs of issuing the Bonds. The original bond proceeds were used in the acquisition of property, demolition,relocation,public improvements and funding the Low and Moderate Income Housing Project. The bonds consist of serial bonds which mature in 2028. Interest is payable semiannually on March 1 and September 1 at interest rates ranging from 4.00% to 4.60%. The bonds are subject to optional redemption on any interest payment date on or after September 1, 2013, at various redemption prices. The bonds are payable solely from certain tax increment revenues of the Agency and other funds held under the indenture. As of June 30, 2014,the outstanding balance is$9,975,000. The annual debt service requirements are as follows: Year Encling June 30, Principal Interest Total 2015 $ 590,000 $ 424,145 $ 1,014,145 2016 615,000 398,570 1,013,570 2017 640,000 373,150 1,013,150 2018 665,000 346,314 1,011,314 2019 695,000 317,830 1,012,830 2020-2024 3,935,000 1,101,059 5,036,059 2025-2028 2,835,000 223,918 3,058,918 Total $9,975,000 $3,184,986 $13,159,986 2015-02-17 Agenda Packet 89 Page 259 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 6—Long-Term Debt(Continued) Fiduciary Funds Long-Term Debt(Continued) A. Tax Allocation Bonds(Continued) 2006 Subordinate Tax Allocation Refunding Bonds, Series B In July 2006, the RDA issued $12,325,000 2006 Subordinate Tax Allocation Refunding Bonds, Series B to refinance the RDA's outstanding BayfrontlTown Centre Redevelopment Project 1994 Senior Tax Allocation Refunding Bonds, Series C and D, and to satisfy the reserve requirement for the Bonds and provide for the costs of issuing the Bonds. The original bond proceeds were used in the acquisition of property, demolition, relocation, public improvements and funding the Low and Moderate Income Housing Project. The bonds consist of$7,995,000 serial bonds which mature from 2007 to 2021 in amounts ranging from $290,000 to $735,000 and term bonds of$4,330,000 which mature in 2028. Interest is payable semiannually on April 1 and October 1 at interest rates ranging from 4.00%to 6.00%. The bonds are subject to optional redemption on any interest payment date on or after October 1, 2013, at various redemption prices. The bonds are payable solely from certain tax increment revenues of the Agency and other funds held under the indenture. As of June 30, 2014, the outstanding balance is$9,320,000. The annual debt service requirements are as follows: Year Encling June 30, Principal Interest Total 2015 $ 525,000 $ 464,096 $ 989,096 2016 550,000 438,559 988,559 2017 575,000 410,984 985,984 2018 605,000 381,484 986,484 2019 635,000 350,484 985,484 2020-2024 3,690,000 1,218,879 4,908,879 2025-2028 2,740,000 248,063 2,988,063 Total $9,320,000 $3,512,549 $12,832,549 2008 Tax Allocation Refunding In July 2008, the RDA issued the 2008 Tax Allocation Refunding Bonds in the amount of $21,625,000 to refinance the RDA's outstanding Merged Redevelopment Project 2000 Tax Allocation Bonds, to satisfy the reserve requirement for the Bonds,to provide for the costs of issuing the Bonds,and to provide funds to finance or refinance redevelopment activities. The bonds consist of $11,570,000 serial bonds which mature from 2014 to 2028 in amounts ranging from $575,000 to $1,020,000 and term bonds of $3,345,000 and $6,710,000 which mature in 2031 and 2036 respectively. Interest is payable semiannually on March 1 and September 1 at interest rates ranging from 4.00%to 4.94%. The bonds are subject to optional redemption on any interest payment date on or after September 1, 2019, at various redemption prices. The bonds are payable solely from certain tax increment revenues of the Agency and other funds held under the indenture. As of June 30, 2014, the outstanding balance is $21,625,000. 2015-02-17 Agenda Packet 90 Page 260 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 6—Long-Term Debt(Continued) Fiduciary Funds Long-Term Debt(Continued) A. Tax Allocation Bonds(Continued) The annual debt service requirements are as follows: Year Ending June 30, Principal Interest Total 2015 $ 575,000 $ 952,136 $ 1,527,136 2016 600,000 928,636 1,528,636 2017 620,000 904,236 1,524,236 2018 645,000 878,936 1,523,936 2019 670,000 852,636 1,522,636 2020-2024 3,785,000 3,823,737 7,608,737 2025-2029 4,675,000 2,914,257 7,589,257 2030-2034 5,845,000 1,712,984 7,557,984 2035-2037 4,210,000 306,138 4,516,138 Total $21,625,000 $13,273,696 $34,898,696 Pledged Revenues The Successor Agency has pledged tax revenues to the repayment of the RDA's debts transferred to it on February 1, 2012 through the final maturity of the Bonds, or early retirement of the Bonds, whichever comes first. Tax revenues consist of Redevelopment Property Tax Trust Fund distributions allocated to the RDA's project areas pursuant to Section 33670 of the Redevelopment Law excluding that portion of such tax increment revenues required to be paid under tax-sharing agreements unless the payment of such amounts has been subordinated to payment of debt services on the Bonds. Redevelopment Property Tax Trust Fund distributions earned in fiscal year 2014 was $6,144,145 and total debt service of all Tax Allocation Bonds paid was $2,966,703. The Bonds required 75% of net distributions. In future years, annual principal and interest payments on the Tax Allocation Bonds are expected to require 75% of Redevelopment Property Tax Trust Fund distributions. B. ERAF Loans Classification Balance Debt Debt Balance Due within Due in More June 30,2013 Issued Retired June 30,2014 One Year Than One Year 2005 ERAF $ 185,000 $ $ (90,000) $ 95,000 $ 95,000 $ 2006 ERAF 340,000 (105,000) 235,000 115,000 120,000 Total $ 525,000 $ $(195,000) $ 330,000 $ 210,000 $ 120,000 2015-02-17 Agenda Packet 91 Page 261 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 6—Long-Term Debt(Continued) Fiduciary Funds Long-Term Debt(Continued) B. ERAFLoans(Continued) 2005 ERAF In May 2005, the RDA participated in a $765,000 Loan Agreement with the California Statewide Communities Development Authority to finance their 2005 share of ERAF Payments to the County Auditor. The principal balance of $310,000 was transferred to the Successor Agency on February 1, 2012. As of June 30, 2014, the outstanding balance is $95,000. The annual debt service requirements are as follows: June 30, Principal Interest Total 2015 $ 95,000 $ 5,880 $ 100,880 Total $ 95,000 $ 5,880 $ 100,880 2006 ERAF In May 2006, the RDA participated in a $930,000 Loan Agreement with the California Statewide Communities Development Authority to finance their 2006 share of ERAF Payments to the County Auditor. The principal balance of $487,500 was transferred to the Successor Agency on February 1, 2012. As of June 30, 2014,the outstanding balance is $235,000. The annual debt service requirements are as follows: Year Encling June 30, Principal Interest Total 2015 $ 115,000 $ 14,282 $ 129,282 2016 120,000 7,792 127,792 Total $ 235,000 $ 22,074 $ 257,074 Special Assessment Debt—Non-City Obligations Bonds issued to finance public improvement projects in certain assessment districts are liabilities of the property owners and are secured by liens against the assessed properties. The City acts as an agent for collection of principal and interest payments by the property owners and remittance of such monies to the bondholders. The City has no obligation or duty to pay any delinquency out of any available funds of the City. Neither the faith, credit, nor the taxing power of the City is pledged to the payment of the bonds. Therefore,none of the following obligations are included in the accompanying basic financial statements. At June 30,2014,the special assessment debts outstanding are as follows: 2015-02-17 Agenda Packet 92 Page 262 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 6—Long-Term Debt(Continued) Special Assessment Debt—Non-City Obligations (Continued) Original Outstanding Amount June 30,2014 CFD 06-1A Eastlake Woods,Vista,Land Swap $ 39,000,000 $ 23,600,000 CFD 06-1B Eastlake Woods,Vista,Land Swap 7,880,000 5,270,000 CFD 01-2 McMillin Otay Valley Ranch Village 6 10,250,000 7,405,000 CFD 08-I Otay Ranch Village 21,655,000 16,345,000 CFD 07-I Otay Ranch Village II 28,050,000 19,480,000 CFD 12-I McMillin Otay Ranch Village 7 22,565,000 14,985,000 CFD 2001-1B San Miguel Ranch 2005 Improvement 12,230,000 10,725,000 CFD 13-I McMillin Otay Ranch Village 7 16,620,000 9,565,000 CFD 07-I McMillin Otay Ranch Village I 16,950,000 13,595,000 2005 Revenue Refunding Bonds 93,930,000 71,460,000 AD 94-I Eastlake Greens Phase H 7,464,474 2,370,000 RAD 2001-1 Refunding Revenue Bonds Residential 20,445,000 7,030,000 RAD 2001-2 Refunding Revenue Bonds Cointnercial 9,705,000 1,135,000 Industrial Development Revenue Bonds, 1992 Series A-D 250,000,000 150,000,000 Industrial Development Revenue Bonds, 1996 Series A-B 98,900,000 98,900,000 Industrial Development Revenue Bonds, 1997 Series A 25,000,000 25,000,000 Industrial Development Revenue Bonds,2004 Series A-F 251,265,000 251,265,000 Industrial Development Revenue Bonds,2006 Series A 161,240,000 161,240,000 Total $ 1,093,149,474 $ 889,370,000 Multi-Family Housing Bonds—Non-City Obligations Bonds issued to finance public improvement and/or affordable multifamily housing projects are liabilities of the developers and are secured by liens against the assessed property. The City has no obligation or duty to pay any delinquency out of any available funds of the City.Neither the faith,credit, nor the taxing power of the City is pledged to the payment of the bonds. Therefore,none of the following obligations are included in the accompanying basic financial statements. At June 30, 2014, the multi-family housing bonds outstanding are as follows: Original Outstanding Amount June 30,2014 2000 A Pear Tree Manor Project $ 5,779,000 $ 4,659,000 1999 A Villa Serena Project 5,566,500 5,270,000 2007 A Oxford Terrace Apartments 2,276,000 1,851,000 2007 B Oxford Terrace Apartments 2,363,000 2,363,000 2006 A Teresina Apartment Projects 37,940,000 37,940,000 2007 C The Landing Apartment 16,670,000 5,904,011 Total $ 70,594,500 $ 57,987,011 2015-02-17 Agenda Packet 93 Page 263 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 7—Unearned/Deferred Revenue A. Government-Wide Financial Statements At June 30,2014,unearned revenue was reported as follows: Grants $ 769,892 Total $ 769,892 B. Governmental Fund Financial Statements At June 30,2014,unavailable revenue was reported as follows: Interest receivable on: Advances to other funds $ 11,922,650 Loans Receivable: South Bay Community Services 4,740,437 South Bay Community Villas,L.P. 4,400,000 St.Regis Park 1,387,152 NSP Homebuyer Prog(SD Community Housing Corp) 1,000,000 Los Vecinos (Wakeland Housing&Development) 5,680,000 Seniors on Broadway (MAACProject) 3,511,194 Rancho Vista Housing(Chelsea Invest Corp) 1,500,000 Alpha III Development(Main Plaza) 1,800,000 Wakeland Lofts Landis 1,850,000 The Landings (Chelsea Invest,Corp) 9,306,076 Long-term receivables 2,120,649 Public Facilities DIF 1,203,496 Grants 685,585 Total $ 51,107,239 Note 8—Compensated Absences Government-Wide Financial Statements—Governmental Activities Summary of changes in governmental activities compensated absences for the year ended June 30, 2014, is as follows: Classification Balance Balance Due within Due in More June 30,2013 Additions Deletions June 30,2014 One Year Than One Year Compensated Absences $ 6,739,216 $ 4,056,341 $ (4,170,097) $ 6,625,460 $ 4,463,759 $ 2,161,701 Total $ 6,739,216 $ 4,056,341 S (4,170,097) S 6,625,460 $ 4,463,759 $ 2,161,701 2015-02-17 Agenda Packet 94 Page 264 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 8—Compensated Absences(Continued) Government-Wide Financial Statements—Governmental Activities(Continued) The City's liability for vested and unpaid compensated absences(accrued vacation)has been accrued and amounts to $6,625,460 at June 30, 2014. For the governmental activities claims and judgments and compensated absences are generally liquidated by the general fund. In business-type funds,the liabilities are reported in the fund as the benefits vest and are earned. Compensated absences at June 30,2014,are obligations of the following funds: Governmental Funds $ 6,548,853 Fleet Management 76,607 Total $ 6,625,460 Governmental-Wide Financial Statements—Business-Type Activities Compensated absences at June 30,2014,are obligations of the following funds: Classification Balance Balance Due within Due in More June 30,2013 Additions Deletions June 30,2014 One Year Than One Year Compensated Absences $ 530,753 $ 461,163 $ (426,642) $ 565,274 $ 455,464 $ 109,810 Total $ 530,753 $ 461,163 $ (426,642) $ 565,274 $ 455,464 $ 109,810 Transit $ 18,766 Development Services 343,118 Sewer 203,390 $ 565,274 Note 9—Other Required Fund Disclosures At June 30,2014,the following funds had deficit fund equity: Debt Service City Debt Services Fund $ (36,852,341) Special Revenue Transportation Sales Tax $ (459,373) City Debt Service Fund- The City Debt Service fund had an accumulated deficit of$(36,852,341),due to the fund booking its long term advances. The City expects to repay the advances via transfers from other funds. Transportation Sales Tax-The Transportation Grants fund had an accumulated deficit of$(459,373), due to unreimbursed claims. The City expects to receive the reimbursements in Fiscal Year 2015. 2015-02-17 Agenda Packet 95 Page 265 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 10—Self-Insurance Accrued Liabilities The City is self-insured for the first $500,000 per occurrence for its general liability losses including personal injury, property damage, errors and omissions, automobile liability and employment practices liability. For those losses between $500,000 and $2,500,000 per occurrence the City pools its liabilities through its membership in the San Diego Pooled Insurance Program Authority (SANDPIPA). Insurance for losses in excess of the $2,500,000 up to $47,000,000 is purchased on a group basis by the member cities. SANDPIPA is a joint powers authority comprised of twelve San Diego County cities. The Board of Directors consists of one staff representative (and an alternate) from each of the member cities as designated by the city's governing body. Each member city has equal representation on the Board of Directors. The Board of Directors is liable for all actions of SANDPIPA. The SANDPIPA Board of Directors establishes an Executive Committee that is responsible for the administration and operation of the risk management programs of SANDPIPA, subject to the control of the Board. The Executive Committee consists of the Board President, Vice-President, Treasurer and a member at-large nominated by the Board President and approved by a vote of the Board. The Executive Committee is responsible for the oversight of all SANDPIPA operations, including preparation and submittal of the Pool's annual budget to the Board for its review and approval. Annual pool premiums and assessments are approved by the Board of Directors and are adjusted annually based on the member city's incurred losses; the member's share of such losses and other expenses as a proportion of all member's losses; historical contributions to reserves (including reserves for IBNR losses); the cost to purchase excess liability insurance and other coverage and a proportionate share of administrative expenses. The City is self-insured for the first $1,000,000 per occurrence for workers' compensation liabilities. Excess workers' compensation coverage is obtained through participation in the CSAC Excess Insurance Authority's Excess Workers' Compensation Program. As of June 30, 2014, there are 167 member entities participating in the program that offers per occurrence coverage up to $5,000,000 through pooled resources and from$5,000,000 to statutory limits via group purchased excess insurance policies. Only the probable amounts of loss as estimated by the City's Risk Manager and Attorney, including an estimate of incurred-but-not reported losses, have been recorded as liabilities in the accompanying basic financial statements. There were no reductions in insurance from the prior year and there were no insurance settlements that exceeded coverage in each of the past three years. 2015-02-17 Agenda Packet 96 Page 266 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 10—Self-Insurance Accrued Liabilities (Continued) The aggregate change in the balance of claims payable as recorded in the Governmental Activities were as follows: Balance Claims and Claims Balance June 30,2013 Changes in Estimates Payments June 30,2014 2011-2012 $ 22,432,093 $ 3,372,465 $ (3,614,694) $ 22,189,864 2012-2013 22,189,864 3,288,127 (4,456,532) 21,021,459 2013-2014 21,021,459 5,186,700 (3,846,924) 22,361,235 The liabilities for claims and judgments typically will be liquidated from the General Fund. Note 11—Pension Plans A. California Public Employees'Retirement Plan Plan Description The City contributes to the California Public Employees' Retirement System ("PERS"), an agent multiple-employer public employees defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of PERS' annual financial report may be obtained from their Executive Office located at 400 P Street, Sacramento, California 95814. A separate report for the City's plan within the Fund is not available. Funding Policy Plan participants are required to contribute a percentage of their annual covered salary. The City has implemented a three Tiered structure. Participants become members of a specific tier based upon their date of membership to PERS. Miscellaneous members contribute 8%, 7% and 6.75% of covered salary for tiers 1, 2, 3 respectively. Safety members contribute 9%regardless of PERS membership date or tier. In addition, the City is required to make an employer contribution at an actuarial determined rate of 25.437%and 27.316%for miscellaneous and safety employees respectively,of annual covered payroll for the year ended June 30, 2014. The City's total covered payroll for the year ending June 30, 2013, was $75,828,266. The contribution requirement of plan members and the City are established and may be amended by PERS. Readers of this document are advised to refer directly to the full disclosure of actuarial and funding practices of the multi-employer Ca1PERS system, which this agency does not control. Ca1PERS may employ actuarial techniques such as extended smoothing and amortization periods that would result in future increases in required employer contributions which are not reflected in these financial statements, particularly in the event of any future changes in governmental financial reporting standards and system-wide funding practices. Further information on its financial practices should be requested from Ca1PERS. 2015-02-17 Agenda Packet 97 Page 267 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 11—Pension Plans(Continued) Annual Pension Cost For fiscal year 2014, the City's annual pension cost of $16,215,564 for PERS was equal to the City's required and actual contributions. The required contribution was determined as part of the June 30, 2010, actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions included (a) 7.75% investment rate of return (net of administrative expenses), (b) projected salary increases range from 3.55% to 14.45% for miscellaneous employees and 3.55% to 13.15% for safety employees depending on age, service, and type of employment, and (c) 3.25% per year cost-of-living adjustments. Both (a) and (b) included an inflation component of 3%. The actuarial value of PERS assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a three year period. PERS unfunded actuarial accrued liability (or surplus) for both miscellaneous and safety employees are being amortized as a level percentage of projected payrolls over a closed 20-year period for prior and current service unfunded liability. 2015-02-17 Agenda Packet 98 Page 268 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 11—Pension Plans(Continued) A. California Public Employees'Retirement Plan (Continued) Annual Pension Cost(Continued) THREE-YEAR TREND INFORMATION FOR PERS Annual Pension Cost(APC) Percentage of Net Net Miscellaneous Safety APC Pension Pension Fiscal Year Employees Employees Total Contributed Obligation Asset 6/30/2012 $ 12,563,479 $ 11,432,810 $ 23,996,289 100% $ $ 246,072 6/30/2013 9,482,754 8,705,678 18,188,432 100% 19,071 6/30/2014 8,740,939 7,474,625 16,215,564 100% - Most Recent Actuarial Study — Schedule of Funding Progress Overfunded Actuarial Entry Age Unfunded Liability as Actuarial Actuarial Actuarial Actuarial Percentage of Valuation Asset Accrued Accrued Funded Covered Covered Date Value Liability Liability Ratio Payroll Payroll Miscellaneous: 6/30/2011 $ 287,943,786 $ 93,638,869 $ 93,638,869 75.5% $41,109,611 227.8 6/30/2012 $ 299,659,390 $ 96,312,713 $ 96,312,713 75.7% $41,379,439 232.8 6/30/2013 $ 278,914,479 $135,554,281 $135,554,281 67.3% $41,923,116 323.3 Safety: 6/30/2011 $ 273,750,352 $319,838,087 $ 46,087,735 85.6% $34,000,483 135.6 6/30/2012 $ 289,257,775 $337,368,764 $ 48,110,989 85.7% $33,042,996 145.6 6/30/2013 $ 272,937,929 $362,241,567 $ 89,303,638 75.3% $33,915,150 263.3 *Beginning with 6/30/2013 valuation Actuarial Value of Assets equals Market Value of Assets per CalPERS Direct Smoothing Policy. B. Defined Contribution Pension Plan The City provides pension plan benefits for all of its part-time employees through a defined contribution plan (Public Agency Retirement Plan). In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. The plan is administered by Public Agency Retirement Services (PARS). All part-time employees are eligible to participate from the date of employment. Federal legislation requires contributions of at least 7.5% to a retirement plan, and City Council resolved to match the employees' contributions of 3.75%. The City's contributions for each employee (and interest earned by the accounts) are fully vested immediately. The authority to establish or amend the plan's provisions resides with City Council. 2015-02-17 Agenda Packet 99 Page 269 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 11—Pension Plans(Continued) B. Defined Contribution Pension Plan (Continued) For the year ended June 30,2014,the City's total hourly payroll and covered payroll was$2,165,218. The City made employer contributions of$81,196 (3.75% of current covered payroll), and employees contributed$81,196 (3.75%of current covered payroll). Note 12—Post Retirement Health Benefits Plan Description The City provides a Retiree Healthcare Plan, a single employer defined benefit plan, which allows eligible retirees to purchase healthcare coverage under the City's medical plan. Retirees pay 100% of the premiums. Retirees not eligible for Medicare pay the same healthcare premiums as active employees, even though retiree's healthcare costs are greater than that of active employees. This results in an implied subsidy of retiree's healthcare costs by the City. In fiscal year 2012, the City entered into an agreement with various bargaining groups eliminating the subsidized retiree health care rates for employees hired under the Second Tier CalPERS Retirement Plan. The City subsequently established a third tier for employee benefits—employees hired in this tier are not eligible for this benefit. The postemployment benefit is a single-employer plan. The plan has not been audited and therefore,there is no audited GAAP-basis postemployment benefit plan report available. Eligibility Tier 1 employees are eligible for retiree health benefits if they retired from the City on or after age 50 (unless disabled) and are eligible for PERS pension. The benefits are available only to employees who retired from the City.Membership of the plan consisted of the following at June 30,2014: Police Fire Miscellaneous Total Eligible active employee 164 108 477 749 Enrolled eligible retirees 30 12 177 219 The information above does not reflect eligible retirees that are in the process of enrolling in the healthcare plan. Funding Policy The City offers an implied subsidy benefit paid from the City's general fund. The City's contribution is based on pay-as-you-go. Tier 1 retirees pay 100% of their individual (subsidized) premiums. Retirees under Tier 2 and Tier 3 will pay 100%of the unsubsidized(unblended)health care premiums. Annual OPEB Cost and Net OPEB Obligation The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution ("ARC") of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess)not to exceed thirty years. 2015-02-17 Agenda Packet 100 Page 270 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 12—Post Retirement Health Benefits (Continued) Annual OPEB Cost and Net OPEB Obligation (Continued) The following table shows the components of the City's annual OPEB cost for the year, the amount actually contributed to the plan,and changes in the City's net OPEB obligation: 2014 2013 2012 Annual reguired contribution $ 2,100,000 $ 1,974,000 $ 1,803,000 Interest on net OPEB obligation 241,000 187,000 151,000 Adjustment to the annual required contribution (607,000) (460,000) (285,000) Net OPEB cost 1,734,000 1,701,000 1,669,000 Contribution made (392,000) (359,000) (537,000) Increase in net OPEB liability 1,342,000 1,342,000 1,132,000 Net OPEB liability,beginning of the year 6,027,000 4,685,000 3,553,000 Net OPEB liability,end of the year $ 7,369,000 $ 6,027,000 $ 4,685,000 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2012,2013 and 2014 were as follows: Percentage of Net Annual Actual Annual OPEB OPEB Fiscal Year OPEB Cost Contributions Cost Contributed Oblieation 2011-2012 1,669,000 537,000 32% 4,685,000 2012-2013 1,701,000 359,000 21% 6,027,000 2013-2014 1,734,000 392,000 23% 7,369,000 Funded Status and Funding Progress As of June 30, 2013,the most recent actuarial valuation date,the plan was not funded in its initial year of implementation. The actuarial accrued liability for benefits was $13,081,000, and the actuarial value of assets was $0, resulting in an unfunded actuarial liability ("UAAL") of$13,081,000 and a funded ratio (actuarial value of assets as a percentage of the actuarial liability)of 0%. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about the future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for the benefits. 2015-02-17 Agenda Packet 101 Page 271 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 12—Post Retirement Health Benefits (Continued) Actuarial Methods and Assumptions Projections of benefits for financial reporting purpose are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefits costs between employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial liabilities and the actuarial assets, consistent with the long-term respective of the calculations. The actuarial cost method used for determining the benefit obligation is the Entry Age Normal Cost Method. The actuarial assumptions included a 4.0 % discount rate, the inflation rate for HMO's starts at 8.5% (the increase in 2014 premiums over 2013) and grades down to 5.0% (2021 premiums over 2020) and remains at 5.0% into the future. This assumption means healthcare is assumed to increase, on the average, 6.75% a year for HMOs/PPOs Non-Medicare and 6.95%a year for HMOs/PPOs Medicare a year for the next seven years after 2013. The general inflation assumption rate is 3% and is assumed that healthcare will level off at 1.5% over general inflation. The UAAL is being amortized as a level percentage of projected payroll over a closed 30 year period. Most Recent Actuarial Study—Schedule of Funding Progress Unfunded Actuarial Fntry Age Unfunded Liability as Actuarial Actuarial Actuarial Actuarial Percentage of Valuation Assets Accrued Accrued Funded Covered Covered Date Value Liability Liability Ratio Payroll Payroll 6/30/2013 $ - $13,081,000 $(13,081,000) 0.00% $62,923,000 -20.79% Note 13—Pollution Remediation Obligations The City is required to estimate the components of expected pollution remediation outlays and determine whether outlays for those components should be accrued as a liabilities or, if appropriate, capitalized when goods and services are acquired if one of the following five specified obligating events occurs: • The City is compelled to take pollution remediation action because of an imminent endangerment; • The City violates a pollution prevention-related permit or license; • The City is named, or evidence indicates that it will be named, by a regulator as a responsible party or potentially responsible party for remediation, or as a government responsible for sharing costs; • The City is named, or evidence indicates that it will be named, in a lawsuit to compel participation in pollution remediation; • The City commences or legally obligates itself to commence pollution remediation. 2015-02-17 Agenda Packet 102 Page 272 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 13—Pollution Remediation Obligations(Continued) At June 30,2014,the City identified the following sites which met one of the above obligating events: Corp Yard The estimate installation costs of groundwater monitoring wells and monitoring activity is approximately $150,000. This estimate is based on the installation of additional ground water monitoring wells and about five years to get the site closed with the cost of $20,000 per year in testing and reporting and about$10,000 a year in staff time. This estimate is subject to the test result or changes in applicable laws or regulations. The intent is to monitor for natural attenuation, however,the City believes that after another round of monitoring,the site will be closed. The City secured a pollution and remediation legal liability insurance to cover pollution and remediation legal liability,legal defense expense and contingent transportation coverage in the amount of$10,000,000 per occurrence up to $50,000,000 in aggregate liability with a self-insured retention amount of$100,000 per occurrence. At June 30, 2014, the City recorded pollution remediation obligations in the amount of $150,000 on the Government-Wide Statement of Net Assets and allocated the total amount to General Government on the Government-Wide Statement of Activities and Changes in Net Assets. The pollution remediation costs for Corp Yard are not covered by this insurance; however, the City will be covered should there be claims against the City by third parties. Note 14—Commitments and Contingencies Litigation The City is presently involved in certain matters of litigation that have risen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize. Grants The City participates in a number of federally assisted grant programs, including those from the U.S. Department of Housing and Urban Development, U.S. Department of Justice, U.S. Department of Treasury,U.S. Department of Transportation, and the U.S. Department of Education. Receipts from these grant programs are subject to audit to determine if the monies were expended in accordance with appropriate statues, grant terms and regulations. The City believes no significant liabilities will result on this audit. City Loan to Successor Agency The General Fund has loaned a cumulative amount of $9,002,419 including interest to the Successor Agency for unreimbursed services rendered by City staff. It is anticipated that the Agency will repay this loan from Redevelopment Property Tax Trust Fund distributions. Currently,Redevelopment Property Tax Trust Fund distributions are used to pay for related debt service expenditures and possible future debt issuance. As a result,the Successor Agency is uncertain if the amount will be repaid to the City's General 2015-02-17 Agenda Packet 103 Page 273 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 14—Commitments and Contingencies (Continued) City Loan to Successor Agency(Continued) Fund. Accordingly, this contingent payable has not been reported in accompanying basic financial statements. The Agency will record the contingent payable when payment is assured. Successor Agency—Long Range Property Management Plan The City, acting as the Successor Agency to the Chula Vista Redevelopment Agency, prepared a Long Range Property Management Plan (LRPMP) in compliance with AB 1484. The Successor Agency Oversight Board reviewed and approved the LRPMP on May 12, 2014, and submitted it to the California Department of Finance for review on May 27, 2014. The Department of Finance approved the LRPMP in their July 15,2014,determination letter. 2015-02-17 Agenda Packet 104 Page 274 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 15-Classification of Fund Balances Major Finds Housing Successor Sundry Grants Agency City Public Park Acquisition Other General Special Revenue Special Revenue Debt Service Financing Development Development Governmental Fund And Find Fund Authority Impact Find Find Finds Total Nonspendable Prepaiditems $ 61,805 $ 23,522 $ - $ - $ - $ - $ - $ - $ 85,327 Loansreceivable 7,363,007 3,038,664 - - - 10,535,338 9,940,000 - 30,877,009 Total nonspendable 7,424,812 3,062,186 - - - 10,535,338 9,940,000 - 30,962,336 Restricted SLESF-law enforcement - 256,573 - - - - - - 256,573 Police grants - 143,467 - - - - - - 143,467 Asset forfeiture-drug enforcement and education - 385,311 - - - - - - 385,311 Library services grant - 91,980 - - - - - - 91,980 Park and recreation grants - 13,674 - - - - - - 13,674 SDNeighboorhood Reinvestment Program - 3,859 - - - - - - 3,859 Federal grants - (7,764) - - - - - - (7,764) State grants - (523,787) - - - - - - (523,787) ARRA grants - (145,748) - - - - - - (145,748) Waste management,recycling and envron.grants - 1,383,837 - - - - - - 1,383,837 Community and housing development - (1,370,958) 8,379,761 - - - - 1,789,234 8,798,037 Public facilities - - - - - 9,270,409 - - 9,270,409 Otay Ranch Village ramp and bridge - - - - - 3,949,085 - - 3,949,085 Transportation improvements - - - - - 12,699,400 - 9,730,625 22,430,025 Telegraph Canyon drainage - - - - - 6,129,937 - - 6,129,937 Park acquisitions and development - - - - - - 29,186,780 - 29,186,780 Parking meter services - - - - - - - 859,395 859,395 Public Educational&Govt.Fee - - - - - - - 579,048 579,048 Traffic signal an d safety - - - - - - - 1,886,739 1,886,739 Storm drain - - - - - - - 212,230 212,230 Open space maintenance - - - - - - - 15,366,123 15,366,123 Telecom Utility Tax - - - - - - - 4,246,585 4,246,585 Mobilehome Admin Fee - - - - - - - 81,104 81,104 Assessment districts improvement - - - - - - - 2,509,358 2,509,358 Total restricted - 230,444 8,379,761 - - 32,048,831 29,186,780 37,260,441 107,106,257 Committed Ecomonic contingency 3,600,000 - - - - - - 45,736 3,645,736 Capital projects 1,839,650 - - - - - - 231,699 2,071,349 San Diego Authority for Freeway Emergencies 695,951 - - - - - - - 695,951 Legal Coun cil 80,000 - - - - - - - 80,000 Debt service - - - - 10,125,086 - - 275,043 10,400,129 Total committed 6,215,601 - - - 10,125,086 - - 552,478 16,893,165 Assigned City Council 49,389 - - - - - - - 49,389 City Clerk 294 - - - - - - - 294 City Attorney 22,765 - - - - - - - 22,765 City Administration 121,162 - - - - - - - 121,162 Information Technology Services Department 25,600 - - - - - - - 25,600 Finance Department 34,750 - - - - - - - 34,750 Non-Departmental 281,817 - - - - - - - 281,817 Police Department 977,975 - - - - - - - 977,975 Fire Department 128,985 - - - - - - - 128,985 Public Works Department 101,975 - - - - - - - 101,975 Recreation Department 152,852 - - - - - - - 152,852 Library 41 - - - - - - - 41 Public liability 2,909,639 - - - - - - - 2,909,639 Total assigned 4,807,244 - - - - - - - 4,807,244 Unassigned 14,511,252 - - (36,852,341) - - - (3,598,892) (25,939,981) Total fund balances $32,958,909 $ 3,292,630 $ 8,379,761 $(36,852,341) $ 10,125,086 $42,584,169 $ 39,126,780 $ 34,214,027 $ 133,829,021 2015-02-17 Agenda Packet 105 Page 275 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) FOR THE FISCAL YEAR ENDED JUNE 30,2014 Note 16—Prior period adjustment GASB issued Statement No. 65, Items Previously Reported as Assets and Liabilities, which is intended to clarify the appropriate reporting of deferred outflows of resources and deferred inflows of resources to ensure consistency in financial reporting; amends prior guidance with respect to the treatment of debt issuance costs. Under GASB No. 65, debt issuance costs should be recognized in the period incurred as an expense rather than reported on the statement of net position as deferred charges. The accounting changes of this statement should be applied retroactive; therefore the City reported a restatement to governmental activities beginning net positon of $189,480 to immediately expense unamortized bond issuance costs that was previously deferred. 2015-02-17 Agenda Packet 106 Page 276 REQUIRED SUPPLEMENTARY INFORMATION 2015-02-17 Agenda Packet 107 Page 277 ;mp"FW CITY OF CHULAVISTA 2015-02-17 Agenda Packet 108 Page 278 CITY OF CHULA VISTA BUDGETARY COMPARISON SCHEDULE GENERAL FUND YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes $ 89,764,749 $ 102,651,261 $ 105,718,638 $ 3,067,377 Licenses and permits 1,309,447 1,309,447 1,315,445 5,998 Intergovernmental 2,928,685 2,914,098 2,477,213 (436,885) Charges for services 8,946,339 8,964,745 9,257,946 293,201 Use of money and property 2,281,640 2,289,640 2,522,893 233,253 Fines and forfeitures 1,110,800 1,110,800 1,009,736 (101,064) Other revenues 12,639,967 13,323,302 11,580,545 (1,742,757) Total Revenues 118,981,627 132,563,293 133,882,416 1,319,123 Expenditures: Current: General government 21,127,620 22,618,839 20,586,160 2,032,679 Public safety 68,958,975 70,276,881 68,776,426 1,500,455 Parks and recreation 3,783,213 3,938,909 3,588,693 350,216 Public works 26,324,555 27,474,583 27,092,607 381,976 Library 3,302,361 3,414,106 3,336,380 77,726 Capital outlay 258,350 2,318,251 849,234 1,469,017 Total Expenditures 123,755,074 130,041,569 124,229,500 5,812,069 Excess(Deficiency)of Revenues Over(Under)Expenditures (4,773,447) 2,521,724 9,652,916 7,131,192 Other Financing Sources(Uses): Transfers in 11,266,965 11,782,357 9,571,300 (2,211,057) Transfers out (6,851,003) (16,145,885) (14,234,482) 1,911,403 Total Other Financing Sources (Uses) 4,415,962 (4,363,528) (4,663,182) (299,654) Net Change in Fund Balances (357,485) (1,841,804) 4,989,734 6,831,538 Fund Balances,Beginning of Year 27,969,175 27,969,175 27,969,175 - Fund Balances,End of Year $ 27,611,690 $ 26,127,371 $ 32,958,909 $ 6,831,538 2o1s_WLnf�eAA&WkkvASupplementary Information 109 Page 279 CITY OF CHULA VISTA BUDGETARY COMPARISON SCHEDULE SUNDRY GRANTS YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental $ 14,928,920 $ 16,859,101 $12,054,489 $ (4,804,612) Charges for services 1,264,279 1,264,279 1,104,263 (160,016) Use of money and property 20,000 20,000 49,039 29,039 Other revenues 393,636 469,489 494,360 24,871 Total Revenues 16,606,835 18,612,869 13,702,151 (4,910,718) Expenditures: Current: General government 3,643,283 8,604,947 3,192,996 5,411,951 Public safety 8,042,579 10,344,763 7,272,701 3,072,062 Parks and recreation 1,600 1,600 500 1,100 Public works 4,744,812 5,187,756 2,805,900 2,381,856 Library 8,489 706,754 473,624 233,130 Capital outlay 375,000 5,854,157 2,994,488 2,859,669 Total Expenditures 16,815,763 30,699,977 16,740,209 13,959,768 Excess(Deficiency)of Revenues Over(Under)Expenditures (208,928) (12,087,108) (3,038,058) 9,049,050 Other Financing Sources(Uses): Transfers in 77,226 85,979 85,813 (166) Transfers out (1,010,337) (1,049,078) (1,017,578) 31,500 Capital leases - 2,121,500 2,121,500 - Total Other Financing Sources (Uses) (933,111) 1,158,401 1,189,735 31,334 Net Change in Fund Balances (1,142,039) (10,928,707) (1,848,323) 9,080,384 Fund Balances,Beginning of Year 5,140,953 5,140,953 5,140,953 - Fund Balances,End of Year S 3,998,914 S (5,787,754) S 3,292,630 S 9,080,384 201SSyt,eX �M11tSupplementary Information 110 Page 280 CITY OF CHULA VISTA BUDGETARY COMPARISON SCHEDULE HOUSING SUCCESSOR AGENCY YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ 17,885 $ 17,885 $ 495,188 $ 477,303 Other revenues - - 127,043 127,043 Total Revenues 17,885 17,885 622,231 604,346 Expenditures: Current: General government 192,000 192,000 158,171 33,829 Total Expenditures 192,000 192,000 158,171 33,829 Excess(Deficiency)of Revenues Over(Under)Expenditures (174,115) (174,115) 464,060 638,175 Other Financing Sources(Uses): Transfers in 2,070,291 2,070,291 - (2,070,291) Total Other Financing Sources (Uses) 2,070,291 2,070,291 - (2,070,291) Net Change in Fund Balances 1,896,176 1,896,176 464,060 (1,432,116) Fund Balances,Beginning of Year 7,915,701 7,915,701 7,915,701 Fund Balances,End of Year S 9,811,877 S 9,811,877 S 8,379,761 S (1,432,116) 2015-0§q-pfiLWj8jPjq&fd Supplementary Information 111 Page 281 CITY OF CHULA VISTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS FOR THE YEAR ENDED JUNE 30,2014 Public Employee Retirement Systems(PERS)-Schedule of Funding Progress Overfunded Actuarial Entry Age Unfunded Liability as Actuarial Actuarial Actuarial Actuarial Percentage of Valuation Asset Accrued Accrued Funded Covered Covered Date Value Liability Liability Ratio Payroll Pavroll Miscellaneous: 6/30/2010 $ 271,275,031 $ 355,519,797 $ 84,244,766 76.3% $ 43,498,397 193.7% 6/30/2011 287,943,786 381,582,655 93,638,869 75.5% 41,109,611 227.8% 6/30/2012 299,659,390 395,972,103 96,312,713 75.7% 41,379,439 232.8% 6/30/2013 278,914,479 414,468,760 135,554,281 67.3% 41,923,116 323.3% Safety: 6/30/2010 $ 255,698,516 $ 295,764,402 $ 40,065,886 86.5% $ 34,298,135 116.8% 6/30/2011 273,750,352 319,838,087 46,087,735 85.6% 34,000,483 135.6% 6/30/2012 289,257,775 337,368,764 48,110,989 85.7% 33,042,996 145.6% 6/30/2013 272,937,929 362,241,567 89,303,638 75.3% 33,915,150 263.3% *Beginning with 6/30/2013 valuation Actuarial Value of Assets equals Market Value of Assets per CalPERS Direct Smoothing Policy. Other Post Employment Benefits-Schedule of Funding Progress Unfunded Actuarial Entry Age Unfunded Liability as Actuarial Actuarial Actuarial Actuarial Percentage of Valuation Assets Accrued Accrued Funded Covered Covered Date Value Liability Liability Ratio Payroll Payroll 6/30/2009 $ - $ 11,885,000 $ (11,885,000) 0.00% $ 69,087,000 -17.20% 6/30/2011 - 13,617,000 (13,617,000) 0.00% 73,651,000 -18.49% 6/30/2013 - 13,081,000 (13,081,000) 0.00% 62,923,000 -20.79% 201SLI Supplementary Information 112 Page 282 CITY OF CHULA VISTA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2014 1. BUDGETARY INFORMATION An annual budget is adopted by the City Council prior to the first day of the fiscal year. The budget process includes submittal of each department's budget request for the next fiscal year, a detailed review of each department's proposed budget by the City Manager, and a final City Manager recommended budget transmitted to the City Council for its review before the required date of adoption. Once transmitted to the City Council, the proposed budget is made available for public inspection. A public hearing is held to give the public the opportunity to comment upon the proposed budget.Notice of such public hearing is published in a newspaper of general circulation. The adoption of the budget is accomplished by the approval of a Budget Resolution. The legal level of budgetary control is at the expenditure category level. Any budget modification, which would result in an appropriation increase, requires City Council approval. The City Manager is authorized to transfer appropriations up to $15,000 within a departmental budget. Any appropriation transfers between departments or greater than $15,000 require City Council approval. Reported budget figures are as originally adopted or subsequently amended plus prior year continuing appropriations. Such budget amendments during the year, including those related to supplemental appropriations, did not cause these reported budget amounts to be significantly different than the originally adopted budget amounts. All appropriations which are not obligated, encumbered or expended at the end of the fiscal year lapse and become a part of the unreserved fund balance which may be appropriated for the next fiscal year. An annual budget for the year ended June 30, 2014, was adopted and approved by the City Council for the general, special revenue and debt service funds except for the Developer's Deposit Special Revenue fund, which is used to account for various developer deposit for development projects and is used to fund staff costs and other costs related to specific projects, and Public & Educational Government Fees Special Revenue fund,which is used to account for the 1%PEG fees. These budgets are prepared on the modified accrual basis of accounting. The budgets of the capital projects funds are primarily long-term budgets, which emphasize major programs and capital outlay plans extending over a number of years. Because of the long-term nature of these projects, annual budget comparisons are not considered meaningful, and accordingly, no budgetary information for capital projects funds is included in the accompanying basic financial statements. 2015-02-17 Agenda Packet 113 Page 283 ;mp"FW CITY OF CHULAVISTA 2015-02-17 Agenda Packet 114 Page 284 SUPPLEMENTARY INFORMATION 2015-02-17 Agenda Packet 115 Page 285 NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS: Transportation Grants - This fund is used to account for revenues and expenditures received from the State under the Street and Safety Code Sections 2106, 2107 and 2107.5. The allocations must be spent for street maintenance or construction and a limited amount for engineering. Parking Meter-This fund is used to account for revenues from on/off street parking and issued parking citations within the parking district. The funds derived must be expended for a purpose substantially connected with the problem of traffic regulation and control in the parking district. Traffic Safety - This fund is a depository for all monies derived from vehicle code fines (excluding parking violations). The fines are collected through the County court system and remitted to the City monthly. These monies may be expended only for traffic control devices and equipment and maintenance thereof or for the maintenance,improvement or construction of public streets. Traffic Signals-This fund accounts for fees from developers for all new traffic signal construction. Storm Drain-This fund is a depository for all monies collected from the monthly storm drain service charge.Monies in this fund may be used for storm drain purposes. Town Centre I- This fund is used to account for revenues from an in lieu parking fee. The in lieu parking fee applies to any developer of a new commercial building or addition to an existing commercial building within the Downtown Parking district. Use of monies in this fund is restricted for the purchase or development of parking sites. Open Space Districts - This fund is a depository for all monies received for all flat rate property tax assessments levied against benefiting property owners for the maintenance of open space areas. Housing Programs - This fund is for federal housing rehabilitation monies held in trust by Bank of America for issuance of housing rehab loans to qualified low and moderate income recipients. Housing Authority - This fund is used to account for revenues and expenditures received from Local, State and Federal governments for the City's program in promoting balanced housing for families of all income levels. Transportation Sales Tax - This fund was established for the receipt and disbursement of all transportation sales tax revenues for the City. 2015-02-17 Agenda Packet 116 Page 286 NON-MAJOR GOVERNMENTAL FUNDS Mobile Park Fee—This fund was established to account for the Mobile home Park Space Rent Review Admin Fee to reimburse the city for all staff time and other costs associated with administering the review. Public Educational& Government(PEG) Fees—This fund was established to account for the 1%PEG fees. Utility Tax Settlement— This fund is used to account for funds in accordance with a 2014 settlement agreement that resolved a class action lawsuit challenging the City's collection of Telephone Users' Taxes from wireless customers. DEBT SERVICE FUNDS: Notes Payable-This fund is used for the payment of principal and interest on various notes payable. Lease Payable - This fund is used to account for the City's portion of the infrastructure and financing costs of the San Diego County regional communications systems (RCS) and lease purchase of the Fire Department's medical resuscitation equipment. CAPITAL PROJECTS FUNDS: Residential Construction Tax-This fund is a depository for fees levied for the construction,replacement or conversion of all dwelling units within the City including hotels and motels. Highway Safety - This fund is a depository for the revenues received from State per Proposition 1B. Funds must be spent for transportation projects to relieve congestion, improve the movement of goods, improve air quality and security of the transportation system. Industrial Development Authority-This fund was established to account for staff costs in assisting in the issuance of industrial development bonds.A fee of 1/8 of 1%is charged to reimburse costs incurred. Assessment District Improvements- This fund was established as a depository for monies received from issuance of bonds for various assessment districts. The monies are used to finance the construction of public works improvements in the related districts. 2015-02-17 Agenda Packet 117 Page 287 NON-MAJOR GOVERNMENTAL FUNDS Transportation Partnership - This fund is a depository for the revenues received from the State and Local Transportation Partnership Program.Funds must be spent for street purposes. Other Transportation Program - This fund is a depository for the revenues received from the Federal Highway Safety Improvement Program. Funds must be spent for street,public highway bridges and other regional surface transportation programs. 2015-02-17 Agenda Packet 118 Page 288 ;mp"FW CITY OF CHULAVISTA 2015-02-17 Agenda Packet 119 Page 289 CITY OF CHULA VISTA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30,2014 Special Revenue Funds Transportation Grants Parking Meter Traffic Safetv Traffic Signal Storm Drain Assets: Pooled cash and investments $ 5,896,273 $ 1,074,425 $ 155 $ 1,852,110 $ 131,450 Receivables: Accounts - 18,266 32,154 - 80,638 Taxes 744,532 - - - - Accrued interest 5,487 1,291 34 1286 207 Deferred loans - - - - - Due from other governments - - - - Total Assets $ 6,646,292 $ 1,093,982 $ 32,343 $ 1,854,396 $ 212,295 Liabilities,Deferred inflows of Resources, and Fund Balances: Liabilities: Accounts payable S 26,164 $ 119,576 $ S S 66 Accrued liabilities - 8,983 - Pass-through payables - Due to other funds - - Total Liabilities 26,164 128,559 66 Deferred inflows of resources: Unavailable revenues - - - Total Deferred inflows of Resources - - - - - Fund Balances: Restricted for: Community development projects 6,620,128 - Public safety - 965,423 32,343 1,854,396 Parks and recreation - - - - Capital Projects 212,229 Committed to: Public safety - Capital Projects Debt service Unassigned - - - - Total Fund Balances 6,620,128 965,423 32,343 1,854,396 212,229 Total Liabilities,deferred inflows of resources,and Fund Balances $ 6,646,292 $ 1,093,982 $ 32,343 $ 1,854,396 $ 212,295 2015-02-17 Agenda Packet 120 Page 290 CITY OF CHULA VISTA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30,2014 Special Revenue Funds Open Space Housing Housing Town Center I Districts Programs Authority Assets: Pooled cash and investments $ 51,187 $ 15,971,503 $ 80,831 $ 1,029,597 Receivables: Accounts - - - - Taxes - 18,637 - - Accrued interest 62 18,724 11,803 577 Deferred loans - - 599,934 2,221,507 Due from other governments - - 11,355 - Total Assets $ 51,249 $ 16,008,864 $ 703,923 $ 3,251,681 Liabilities,Deferred inflows of Resources, and Fund Balances: Liabilities: Accounts payable S S 641743 S 32 $ 602 Accrued liabilities - - 35,385 Pass-through payables - Due to other funds - - - Total Liabilities - 642,743 32 35,987 Deferred inflows of resources: Unavailable revenues - 99,217 2,221,507 Total Deferred inflows of Resources - - 99,217 2,221,507 Fund Balances: Restricted for: Community development projects 604,674 994,187 Public safety - - Parks and recreation - Capital Projects 51,249 15,366,121 Committed to: Public safety - - Capital Projects Debt service Unassigned - - - - Total Fund Balances 51,249 15,366,121 604,674 994,187 Total Liabilities,deferred inflows of resources,and Fund Balances $ 51,249 $ 16,008,864 $ 703,923 $ 3,251,681 2015-02-17 Agenda Packet 121 Page 291 CITY OF CHULA VISTA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30,2014 Special Revenue Funds Public Transportation Mobile Park Education and Utility Tax Sales Tax Fee Govt Fee Settlement Assets: Pooled cash and investments $ 3,060 $ 80,956 $ 434,114 $ 4,244,649 Receivables: Accounts 158,058 - - - Taxes - - 172,350 - Accrued interest 683 148 510 1.937 Deferred loans - - - - Due from other governments 315,699 - - - Total Assets $ 477,500 $ 81,104 $ 606,974 $ 4,246,586 Liabilities,Deferred inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 666,805 $ S 26,520 S Accrued liabilities - 1.406 Pass-through payables 74,229 Due to other funds 195,839 - Total Liabilities 936,873 - 27,926 Deferred inflows of resources: Unavailable revenues - - Total Deferred inflows of Resources - - - - Fund Balances: Restricted for: Community development projects 579,048 Public safety - Parks and recreation - 81,104 - Capital Projects 3,139,519 4,246,586 Committed to: Public safety - - Capital Projects Debt service Unassigned (3,598,892) - - - Total Fund Balances (459,373) 81,104 579,048 4,246,586 Total Liabilities,deferred inflows of resources,and Fund Balances $ 477,500 $ 81,104 $ 606,974 $ 4,246,586 2015-02-17 Agenda Packet 122 Page 292 CITY OF CHULA VISTA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30,2014 Capital Projects Funds Residential Industrial Assessment Construction Development District Tax Highway Safety Authority Improvement Assets: Pooled cash and investments $ 202,517 $ 45,184 $ 51 $ 2,506,511 Receivables: Accounts - - - - Taxes - - 105 Accrued interest 108 552 2,744 Deferred loans - - - Due from other governments - - - - Total Assets $ 202,625 $ 45,736 $ 51 $ 2,509,360 Liabilities,Deferred inflows of Resources, and Fund Balances: Liabilities: Accounts payable S S S S Accrued liabilities Pass-through payables Due to other funds Total Liabilities Deferred inflows of resources: Unavailable revenues Total Deferred inflows of Resources - - - Fund Balances: Restricted for: Community development projects Public safety Parks and recreation - Capital Projects 51 2,509,360 Committed to: Public safety 45.736 - - Capital Projects 202,625 - Debt service - Unassigned - - - - Total Fund Balances 202,625 45,736 51 2,509,360 Total Liabilities,deferred inflows of resources,and Fund Balances $ 202,625 $ 45,736 $ 51 $ 2,509,360 2015-02-17 Agenda Packet 123 Page 293 CITY OF CHULA VISTA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30,2014 Capital Projects Funds Debt Service Funds Transportation Other Total Partnership Transportation Governmental Fund Program Fund Notes Payable Lease Payable Funds Assets: Pooled cash and investments $ 29,040 $ $ - $ 270,591 $ 33,904,204 Receivables: Accounts - 15,215 - 304,331 Taxes - - - 935,624 Accrued interest 34 260 47,447 Deferred loans - - 2,821,441 Due from other governments 1,094,237 - - 1,421,291 Total Assets $ 29,074 $ 1,094,237 $ 15,215 $ 270,851 $ 39,434,338 Liabilities,Deferred inflows of Resources, and Fund Balances: Liabilities: Accounts payable S $ 178,649 $ 2,250 $ $ 1,663,407 Accrued liabilities - - 45,774 Pass-through payables 12,502 - 86,731 Due to other funds 535,854 8,773 740,466 Total Liabilities 727,005 11,023 - 2,536,378 Deferred inflows of resources: Unavailable revenues 363,209 - 2,683,933 Total Deferred inflows of Resources - 363,209 - - 2,683,933 Fund Balances: Restricted for: Community development projects - 8,798,037 Public safety 2,852,162 Parks and recreation - 81,104 Capital Projects 4,023 25,529,138 Committed to: Public safety - 45,736 Capital Projects 29,074 - 231,699 Debt service - 4,192 270,851 275,043 Unassigned - - - (3,598,892) Total Fund Balances 29,074 4,023 4,192 270,851 34,214,027 Total Liabilities,deferred inflows of resources,and Fund Balances $ 29,074 $ 1,094,237 $ 15,215 $ 270,851 $ 39,434,338 2015-02-17 Agenda Packet 124 Page 294 ;mp"FW CITY OF CHULAVISTA 2015-02-17 Agenda Packet 125 Page 295 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANCES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2014 Special Revenue Funds Transportation Grants Parking Meter Traffic Safety Traffic Signal Storm Drain Revenues: Taxes S $ - $ S S Licenses and permits 39,897 Intergovernmental 12,210,024 - Charges for services - - 207,014 600,025 Use of money and property 50,527 391,649 242 20,143 1,848 Fines and forfeitures - 232,857 427,460 - (4,341) Miscellaneous 1,778 2,001 - 24,085 - Total Revenues 12,262,329 666,404 427,702 251,242 597,532 Expenditures: Current: General government - - - - - Public safety 376,565 27,992 Parks and recreation - - - - Public works - - 29,100 296,883 Capital outlay 1,098,990 273,882 322,958 - Debt service: Principal retirement - - - Interest and fiscal charges - - - - Total Expenditures 1,098,990 650,447 27,992 352,058 296,883 Excess(Deficiency)of Revenues Over(Under)Expenditures 11,163,339 15,957 399,710 (100,816) 300,649 Other Financing Sources(Uses): Transfers in - - - - Transfers out (4,259,428) (366,325) (340,463) Total Other Financing Sources (Uses) (4,259,428) - (366,325) - (340,463) Net Change in Fund Balances 6,903,911 15,957 33,385 (100,816) (39,814) Fund Balances,Beginning of Year (283,783) 949,466 (1,042) 1,955,212 252,043 Fund Balances,End of Year $ 6,620,128 $ 965,423 $ 32,343 $ 1,854,396 $ 212,229 2015-02-17 Agenda Packet 126 Page 296 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2014 Special Revenue Funds Open Space Housing Housing Town Center I Districts Programs Authority Revenues: Taxes S $ $ $ Licenses and permits Intergovernmental 16,686 Charges for services 9,203,769 120 392,009 Use of money and property 559 169,146 3,892 5,355 Fines and forfeitures - - - - Miscellaneous - 834 945 952,506 Total Revenues 559 9,373,749 21,643 1,349,870 Expenditures: Current: General government - - 16,683 554,808 Public safety - - Parks and recreation - Public works 10,460,119 Capital outlay - Debt service: Principal retirement Interest and fiscal charges - - - Total Expenditures - 10,460,119 16,683 554,808 Excess(Deficiency)of Revenues Over(Under)Expenditures 559 (1,086,370) 4,960 795,062 Other Financing Sources(Uses): Transfers in - - - Transfers out (147,555) Total Other Financing Sources (Uses) - - - (147,555) Net Change in Fund Balances 559 (1,086,370) 4,960 647,507 Fund Balances,Beginning of Year 50,690 16,452,491 599,714 346,680 Fund Balances,End of Year $ 51,249 $ 15,366,121 $ 604,674 $ 994,187 2015-02-17 Agenda Packet 127 Page 297 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANCES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2014 Special Revenue Funds Public Transportation Mobile Park Education and Utility Tax Sales Tax Fee Govt Fee Settlement Revenues: Taxes $ 898,172 $ $ $ Licenses and permits - Intergovernmental 294,165 Charges for services - Use of money and property 5,669 1,440 4,924 Fines and forfeitures - - - 19,556 Miscellaneous 330,081 117,055 654,842 - Total Revenues 1,528,087 118,495 659,766 19,556 Expenditures: Current: General government - 67,025 707,809 3,707,500 Public safety - - - Parks and recreation - Public works 38,227 Capital outlay 4,282,594 Debt service: Principal retirement - Interest and fiscal charges - - - - Total Expenditures 4,320,821 67,025 707,809 3,707,500 Excess(Deficiency)of Revenues Over(Under)Expenditures (2,792,734) 51,470 (48,043) (3,687,944) Other Financing Sources(Uses): Transfers in 19,999 - 8,017,453 Transfers out - (82,923) Total Other Financing Sources (Uses) 19,999 - - 7,934,530 Net Change in Fund Balances (2,772,735) 51,470 (48,043) 4,246,586 Fund Balances,Beginning of Year 2,313,362 29,634 627,091 - Fund Balances,End of Year $ (459,373) $ 81,104 $ 579,048 $ 4,246,586 2015-02-17 Agenda Packet 128 Page 298 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2014 Capital Projects Funds Residential Industrial Assessment Construction Development District Tax Highway Safety Authority Improvement Revenues: Taxes $ 209,075 $ $ $ Licenses and permits - Intergovernmental 42,776 Charges for services - - Use of money and property 711 4,776 (7) 24,792 Fines and forfeitures - - - - Miscellaneous - 300,000 - 18,783 Total Revenues 209,786 347,552 (7) 43,575 Expenditures: Current: General govemment - 50,404 - - Public safety - - Parks and recreation 1,248 Public works - - Capital outlay 621,745 161 Debt service: Principal retirement - - interest and fiscal charges - - Total Expenditures - 672,149 - 1,409 Excess(Deficiency)of Revenues Over(Under)Expenditures 209,786 (324,597) (7) 42,166 Other Financing Sources(Uses): Transfers in 383,900 - - Transfers out (606,675) (8,900) Total Other Financing Sources (Uses) (222,775) - - (8,900) Net Change in Fund Balances (12,989) (324,597) (7) 33,266 Fund Balances,Beginning of Year 215,614 370,333 58 2,476,094 Fund Balances,End of Year $ 202,625 $ 45,736 $ 51 $ 2,509,360 2015-02-17 Agenda Packet 129 Page 299 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANCES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2014 Capital Projects Funds Debt Service Funds Transportation Other Total Partnership Transportation Governmental Fund Program Fund Notes Payable Lease Pavable Funds Revenues: Taxes $ $ S $ $ 1,107,247 Licenses and permits 39,897 Intergovernmental 1,552,057 14,115,708 Charges for services - 10,402,937 Use of money and property 310 (1,559) 2,614 687,031 Fines and forfeitures - - - 675,532 Miscellaneous - 54,265 91,229 2,548,404 Total Revenues 310 1,552,057 52,706 93,843 29,576,756 Expenditures: Current: General govemment - - - - 5,104,229 Public safety 404,557 Parks and recreation 1,248 Public works - 10,824,329 Capital outlay 1,532,058 - - 8,132,388 Debt service: Principal retirement - 944,754 451,101 1,395,855 Interest and fiscal charges - 536,600 143,370 679,970 Total Expenditures - 1,532,058 1,481,354 594,471 26,542,576 Excess(Deficiency)of Revenues Over(Under)Expenditures 310 19,999 (1,428,648) (500,628) 3,034,180 Other Financing Sources(Uses): Transfers in - - 1,427,090 496,164 10,344,606 Transfers out (19,999) - - (5,832,268) Total Other Financing Sources (Uses) - (19,999) 1,427,090 496,164 4,512,338 Net Change in Fund Balances 310 - (1,558) (4,464) 7,546,518 Fund Balances,Beginning of Year 28,764 4,023 5,750 275,315 26,667,509 Fund Balances,End of Year $ 29,074 $ 4,023 $ 4,192 $ 270,851 $ 34,214,027 2015-02-17 Agenda Packet 130 Page 300 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL TRANSPORTATION GRANTS YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental $ 6,158,431 $ 6,158,431 $12,210,024 $ 6,051,593 Use of money and property - - 50,527 50,527 Other revenues - - 1,778 1,778 Total Revenues 6,158,431 6,158,431 12,262,329 6,103,898 Expenditures: Capital outlay 2,259,000 5,920,832 1,098,990 4,821,842 Total Expenditures 2,259,000 5,920,832 1,098,990 4,821,842 Excess(Deficiency)of Revenues Over(Under)Expenditures 3,899,431 237,599 11,163,339 10,925,740 Other Financing Sources(Uses): Transfers out (4,259,428) (4,259,428) (4,259,428) - Total Other Financing Sources (Uses) (4,259,428) (4,259,428) (4,259,428) - Net Change in Fund Balances (359,997) (4,021,829) 6,903,911 10,925,740 Fund Balances,Beginning of Year (283,783) (283,783) (283,783) - Fund Balances,End of Year S (643,780) S (4,305,612) S 6,620,128 S 10,925,740 2015-02-17 Agenda Packet 131 Page 301 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL PARKING METER YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Licenses and permits $ 24,000 $ 24,000 $ 39,897 $ 15,897 Use of money and property 376,000 376,000 391,649 15,649 Fines and forfeitures 200,000 200,000 232,857 32,857 Other revenues - - 2,001 2,001 Total Revenues 600,000 600,000 666,404 66,404 Expenditures: Current: Public safety 388,769 401,666 376,565 25,101 Capital outlay 100,000 615,714 273,882 341,832 Total Expenditures 488,769 1,017,380 650,447 366,933 Excess(Deficiency)of Revenues Over(Under)Expenditures 111,231 (417,380) 15,957 433,337 Net Change in Fund Balances 111,231 (417,380) 15,957 433,337 Fund Balances,Beginning of Year 949,466 949,466 949,466 - Fund Balances,End of Year S 1,060,697 S 532,086 S 965,423 S 433,337 2015-02-17 Agenda Packet 132 Page 302 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL TRAFFIC SAFETY YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ - $ - $ 242 $ 242 Fines and forfeitures 437,640 437,640 427,460 (10,180) Total Revenues 437,640 437,640 427,702 (9,938) Expenditures: Current: Public safety 38,500 38,500 27,992 10,508 Total Expenditures 38,500 38,500 27,992 10,508 Excess(Deficiency)of Revenues Over(Under)Expenditures 399,140 399,140 399,710 570 Other Financing Sources(Uses): Transfers out (399,140) (399,140) (366,325) 32,815 Total Other Financing Sources (Uses) (399,140) (399,140) (366,325) 32,815 Net Change in Fund Balances - 33,385 33,385 Fund Balances,Beginning of Year (1,042) (1,042) (1,042) - Fund Balances,End of Year S (1,042) S (1,042) S 32,343 S 33,385 2015-02-17 Agenda Packet 133 Page 303 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL TRAFFIC SIGNAL YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Charges for services $ 175,000 $ 175,000 $ 207,014 $ 32,014 Use of money and property - - 20,143 20,143 Other revenues - - 24,085 24,085 Total Revenues 175,000 175,000 251,242 76,242 Expenditures: Current: Public works 15,000 31,358 29,100 2,258 Capital outlay 100,000 980,127 322,958 657,169 Total Expenditures 115,000 1,011,485 352,058 659,427 Excess(Deficiency)of Revenues Over(Under)Expenditures 60,000 (836,485) (100,816) 735,669 Net Change in Fund Balances 60,000 (836,485) (100,816) 735,669 Fund Balances,Beginning of Year 1,955,212 1,955,212 1,955,212 - Fund Balances,End of Year $ 2,015,212 $ 1,118,727 $ 1,854,396 $ 735,669 2015-02-17 Agenda Packet 134 Page 304 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL STORM DRAIN YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Licenses and permits $ 23,750 $ 23,750 $ - $ (23,750) Charges for services 555,500 555,500 600,025 44,525 Use of money and property - - 1,848 1,848 Fines and forfeitures 5,000 5,000 (4,341) (9,341) Total Revenues 584,250 584,250 597,532 13,282 Expenditures: Current: Public works 301,914 301,914 296,883 5,031 Total Expenditures 301,914 301,914 296,883 5,031 Excess(Deficiency)of Revenues Over(Under)Expenditures 282,336 282,336 300,649 18,313 Other Financing Sources(Uses): Transfers out (340,463) (340,463) (340,463) - Total Other Financing Sources (Uses) (340,463) (340,463) (340,463) - Net Change in Fund Balances (58,127) (58,127) (39,814) 18,313 Fund Balances,Beginning of Year 252,043 252,043 252,043 - Fund Balances,End of Year S 193,916 S 193,916 S 212,229 S 18,313 2015-02-17 Agenda Packet 135 Page 305 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL TOWN CENTER I YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property S - $ $ 559 $ 559 Total Revenues - - 559 559 Expenditures: Capital outlay 10,433 - 10,433 Total Expenditures - 10,433 - 10,433 Excess(Deficiency)of Revenues Over(Under)Expenditures (10,433) 559 10,992 Net Change in Fund Balances - (10,433) 559 10,992 Fund Balances,Beginning of Year 50,690 50,690 50,690 - Fund Balances,End of Year $ 50,690 $ 40,257 $ 51,249 $ 10,992 2015-02-17 Agenda Packet 136 Page 306 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL OPEN SPACE DISTRICTS YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Charges for services $11,461,217 $ 11,461,217 $ 9,203,769 $ (2,257,448) Use of money and property - - 169,146 169,146 Other revenues - - 834 834 Total Revenues 11,461,217 11,461,217 9,373,749 (2,087,468) Expenditures: Current: Public works 11,461,212 11,495,433 10,460,119 1,035,314 Total Expenditures 11,461,212 11,495,433 10,460,119 1,035,314 Excess(Deficiency)of Revenues Over(Under)Expenditures 5 (34,216) (1,086,370) (1,052,154) Net Change in Fund Balances 5 (34,216) (1,086,370) (1,052,154) Fund Balances,Beginning of Year 16,452,491 16,452,491 16,452,491 - Fund Balances,End of Year $16,452,496 $ 16,418,275 $15,366,121 $ (1,052,154) 2015-02-17 Agenda Packet 137 Page 307 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL HOUSING PROGRAMS YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental $ 233,145 $ 233,145 $ 16,686 $ (216,459) Charges for services - - 120 120 Use of money and property - 3,892 3,892 Other revenues - - 945 945 Total Revenues 233,145 233,145 21,643 (211,502) Expenditures: Current: General government 243,145 243,145 16,683 226,462 Total Expenditures 243,145 243,145 16,683 226,462 Excess(Deficiency)of Revenues Over(Under)Expenditures (10,000) (10,000) 4,960 14,960 Net Change in Fund Balances (10,000) (10,000) 4,960 14,960 Fund Balances,Beginning of Year 599,714 599,714 599,714 - Fund Balances,End of Year $ 589,714 $ 589,714 $ 604,674 $ 14,960 2015-02-17 Agenda Packet 138 Page 308 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL HOUSING AUTHORITY YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Charges for services S - S - $ 392,009 $ 392,009 Use of money and property - - 5,355 5,355 Other revenues 732,240 732,240 952,506 220,266 Total Revenues 732,240 732,240 1,349,870 617,630 Expenditures: Current: General government 576,461 593,424 554,808 38,616 Total Expenditures 576,461 593,424 554,808 38,616 Excess(Deficiency)of Revenues Over(Under)Expenditures 155,779 138,816 795,062 656,246 Other Financing Sources(Uses): Transfers out (147,555) (147,555) (147,555) - Total Other Financing Sources (Uses) (147,555) (147,555) (147,555) - Net Change in Fund Balances 8,224 (8,739) 647,507 656,246 Fund Balances,Beginning of Year 346,680 346,680 346,680 - Fund Balances,End of Year $ 354,904 $ 337,941 $ 994,187 $ 656,246 2015-02-17 Agenda Packet 139 Page 309 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL TRANSPORTATION SALES TAX YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes $ 5,738,000 $ 5,738,000 $ 898,172 $ (4,839,828) Intergovernmental 299,981 1,744,652 294,165 (1,450,487) Use of money and property - - 5,669 5,669 Other revenues - 497,282 330,081 (167,201) Total Revenues 6,037,981 7,979,934 1,528,087 (6,451,847) Expenditures: Current: Public works - 100,000 38,227 61,773 Capital outlay 7,435,973 16,930,753 4,282,594 12,648,159 Total Expenditures 7,435,973 17,030,753 4,320,821 12,709,932 Excess(Deficiency)of Revenues Over(Under)Expenditures (1,397,992) (9,050,819) (2,792,734) 6,258,085 Other Financing Sources(Uses): Transfers in - 19,999 19,999 - Total Other Financing Sources (Uses) - 19,999 19,999 - Net Change in Fund Balances (1,397,992) (9,030,820) (2,772,735) 6,258,085 Fund Balances,Beginning of Year 2,313,362 2,313,362 2,313,362 - Fund Balances,End of Year $ 915,370 $ (6,717,458) $ (459,373) $ 6,258,085 2015-02-17 Agenda Packet 140 Page 310 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL MOBILE PARK FEE YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ - $ - $ 1,440 $ 1,440 Other revenues 130,000 130,000 117,055 (12,945) Total Revenues 130,000 130,000 118,495 (11,505) Expenditures: Current: General government 130,000 130,000 67,025 62,975 Total Expenditures 130,000 130,000 67,025 62,975 Excess(Deficiency)of Revenues Over(Under)Expenditures - - 51,470 51,470 Net Change in Fund Balances - - 51,470 51,470 Fund Balances,Beginning of Year 29,634 29,634 29,634 - Fund Balances,End of Year $ 29,634 S 29,634 S 81,104 S 51,470 2015-02-17 Agenda Packet 141 Page 311 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL PUBLIC EDUCATION AND GOVT FEE YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ - $ - $ 4,924 $ 4,924 Other revenues 300,000 300,000 654,842 354,842 Total Revenues 300,000 300,000 659,766 359,766 Expenditures: Current: General government 542,000 957,000 707,809 249,191 Total Expenditures 542,000 957,000 707,809 249,191 Excess(Deficiency)of Revenues Over(Under)Expenditures (242,000) (657,000) (48,043) 608,957 Net Change in Fund Balances (242,000) (657,000) (48,043) 608,957 Fund Balances,Beginning of Year 627,091 627,091 627,091 - Fund Balances,End of Year S 385,091 S (29,909) S 579,048 S 608,957 2015-02-17 Agenda Packet 142 Page 312 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL UTILITY TAX SETTLEMENT YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Fines and forfeitures S $ - $ 19,556 $ 19,556 Total Revenues - - 19,556 19,556 Expenditures: Current: General government - 3,707,501 3,707,500 1 Total Expenditures - 3,707,501 3,707,500 1 Excess(Deficiency)of Revenues Over(Under)Expenditures - (3,707,501) (3,687,944) 19,557 Other Financing Sources(Uses): Transfers in - 8,017,453 8,017,453 - Transfers out - (82,923) (82,923) - Total Other Financing Sources (Uses) - 7,934,530 7,934,530 - Net Change in Fund Balances 4,227,029 4,246,586 19,557 Fund Balances,Beginning of Year - - - Fund Balances,End of Year $ - $ 4,227,029 $ 4,246,586 $ 19,557 2015-02-17 Agenda Packet 143 Page 313 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL PARK ACQUISITION DEVELOPMENT YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ $ $ 309,379 $ 309,379 Developer participation 625,000 625,000 2,614,066 1,989,066 Total Revenues 625,000 625,000 2,923,445 2,298,445 Expenditures: Current: General government 100,000 100,000 - 100,000 Capital outlay - 770,474 29,522 740,952 Total Expenditures 100,000 870,474 29,522 840,952 Excess(Deficiency)of Revenues Over(Under)Expenditures 525,000 (245,474) 2,893,923 3,139,397 Net Change in Fund Balances 525,000 (245,474) 2,893,923 3,139,397 Fund Balances,Beginning of Year 36,232,857 36,232,857 36,232,857 - Fund Balances,End of Year $36,757,857 $ 35,987,383 $39,126,780 $ 3,139,397 2015-02-17 Agenda Packet 144 Page 314 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL RESIDENTIAL CONSTRUCTION TAX YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes S 275,000 $ 275,000 $ 209,075 $ (65,925) Use of money and property - - 711 711 Total Revenues 275,000 275,000 209,786 (65,214) Excess(Deficiency)of Revenues Over(Under)Expenditures 275,000 275,000 209,786 (65,214) Other Financing Sources(Uses): Transfers in 264,000 464,000 383,900 (80,100) Transfers out (679,513) (679,513) (606,675) 72,838 Total Other Financing Sources (Uses) (415,513) (215,513) (222,775) (7,262) Net Change in Fund Balances (140,513) 59,487 (12,989) (72,476) Fund Balances,Beginning of Year 215,614 215,614 215,614 Fund Balances,End of Year $ 75,101 $ 275,101 $ 202,625 $ (72,476) 2015-02-17 Agenda Packet 145 Page 315 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL HIGHWAY SAFETY YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental $ $ $ 42,776 $ 42,776 Use of money and property 4,776 4,776 Other revenues 300,000 300,000 - Total Revenues - 300,000 347,552 47,552 Expenditures: Current: General government 50,406 50,404 2 Capital outlay 621,746 621,745 1 Total Expenditures - 672,152 672,149 3 Excess(Deficiency)of Revenues Over(Under)Expenditures (372,152) (324,597) 47,555 Net Change in Fund Balances - (372,152) (324,597) 47,555 Fund Balances,Beginning of Year 370,333 370,333 370,333 - Fund Balances,End of Year $ 370,333 $ (1,819) $ 45,736 $ 47,555 2015-02-17 Agenda Packet 146 Page 316 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL ASSESSMENT DISTRICT IMPROVEMENT YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ $ $ 24,792 $ 24,792 Other revenues 19,045 19,045 18,783 (262) Total Revenues 19,045 19,045 43,575 24,530 Expenditures: Current: Parks and recreation - 10,775 1,248 9,527 Capital outlay 563,263 161 563,102 Total Expenditures - 574,038 1,409 572,629 Excess(Deficiency)of Revenues Over(Under)Expenditures 19,045 (554,993) 42,166 597,159 Other Financing Sources(Uses): Transfers out (89,000) (89,000) (8,900) 80,100 Total Other Financing Sources (Uses) (89,000) (89,000) (8,900) 80,100 Net Change in Fund Balances (69,955) (643,993) 33,266 677,259 Fund Balances,Beginning of Year 2,476,094 2,476,094 2,476,094 - Fund Balances,End of Year $ 2,406,139 $ 1,832,101 $ 2,509,360 $ 677,259 2015-02-17 Agenda Packet 147 Page 317 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL DEVELOPMENT IMPACT FUNDS YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ 119,290 $ 119,290 $ 506,315 $ 387,025 Developer participation 5,972,477 5,972,477 6,901,855 929,378 Other revenues - - 146,608 146,608 Total Revenues 6,091,767 6,091,767 7,554,778 1,463,011 Expenditures: Current: General government 358,500 358,500 291,733 66,767 Parks and recreation 40,000 40,000 - 40,000 Public works 791,916 791,916 172,098 619,818 Capital outlay 1,398,245 8,468,993 3,341,706 5,127,287 Total Expenditures 2,588,661 9,659,409 3,805,537 5,853,872 Excess(Deficiency)of Revenues Over(Under)Expenditures 3,503,106 (3,567,642) 3,749,241 7,316,883 Other Financing Sources(Uses): Transfers in 36,851 36,851 - (36,851) Transfers out (6,424,131) (6,424,131) (6,111,579) 312,552 Total Other Financing Sources (Uses) (6,387,280) (6,387,280) (6,111,579) 275,701 Net Change in Fund Balances (2,884,174) (9,954,922) (2,362,338) 7,592,584 Fund Balances,Beginning of Year 44,946,507 44,946,507 44,946,507 - Fund Balances,End of Year $42,062,333 $ 34,991,585 $42,584,169 $ 7,592,584 2015-02-17 Agenda Packet 148 Page 318 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL OTHER TRANSPORTATION PROGRAM FUND YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental $ 345,267 $ 345,267 $ 1,552,057 $ 1,206,790 Total Revenues 345,267 345,267 1,552,057 1,206,790 Expenditures: Capital outlay 345,267 5,385,860 1,532,058 3,853,802 Total Expenditures 345,267 5,385,860 1,532,058 3,853,802 Excess(Deficiency)of Revenues Over(Under)Expenditures - (5,040,593) 19,999 5,060,592 Other Financing Sources(Uses): Transfers out (19,999) (19,999) - Total Other Financing Sources (Uses) - (19,999) (19,999) - Net Change in Fund Balances - (5,060,592) - 5,060,592 Fund Balances,Beginning of Year 4,023 4,023 4,023 - Fund Balances,End of Year $ 4,023 $ (5,056,569) $ 4,023 $ 5,060,592 2015-02-17 Agenda Packet 149 Page 319 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL NOTESPAYABLE YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ - $ - $ (1,559) $ (1,559) Other revenues - 65,185 54,265 (10,920) Total Revenues - 65,185 52,706 (12,479) Expenditures: Debt service: Principal retirement 870,568 944,757 944,754 3 Interest and fiscal charges 494,675 536,601 536,600 1 Total Expenditures 1,365,243 1,481,358 1,481,354 4 Excess(Deficiency)of Revenues Over(Under)Expenditures (1,365,243) (1,416,173) (1,428,648) (12,475) Other Financing Sources(Uses): Transfers in 1,365,243 1,427,093 1,427,090 (3) Total Other Financing Sources (Uses) 1,365,243 1,427,093 1,427,090 (3) Net Change in Fund Balances - 10,920 (1,558) (12,478) Fund Balances,Beginning of Year 5,750 5,750 5,750 Fund Balances,End of Year S 5,750 S 16,670 $ 4,192 S (12,478) 2015-02-17 Agenda Packet 150 Page 320 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL LEASE PAYABLE YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ - $ - $ 2,614 $ 2,614 Other revenues 98,308 98,308 91,229 (7,079) Total Revenues 98,308 98,308 93,843 (4,465) Expenditures: Debt service: Principal retirement 451,102 451,102 451,101 1 Interest and fiscal charges 143,370 143,370 143,370 - Total Expenditures 594,472 594,472 594,471 1 Excess(Deficiency)of Revenues Over(Under)Expenditures (496,164) (496,164) (500,628) (4,464) Other Financing Sources(Uses): Transfers in 496,164 496,164 496,164 - Total Other Financing Sources (Uses) 496,164 496,164 496,164 - Net Change in Fund Balances - - (4,464) (4,464) Fund Balances,Beginning of Year 275,315 275,315 275,315 - Fund Balances,End of Year $ 275,315 $ 275,315 $ 270,851 $ (4,464) 2015-02-17 Agenda Packet 151 Page 321 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL CITY DEBT SERVICE YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Expenditures: Debt service: Interest and fiscal charges $ 900,000 $ 900,000 $ 660,120 $ 239,880 Total Expenditures 900,000 900,000 660,120 239,880 Excess(Deficiency)of Revenues Over(Under)Expenditures (900,000) (900,000) (660,120) 239,880 Other Financing Sources(Uses): Transfers in 817,779 817,779 817,779 - Transfers out (36,851) (36,851) (36,851) Total Other Financing Sources (Uses) 780,928 780,928 780,928 - Net Change in Fund Balances (119,072) (119,072) 120,808 239,880 Fund Balances,Beginning of Year (36,973,149) (36,973,149) (36,973,149) - Fund Balances,End of Year $ (37,092,221) $ (37,092,221) $ (36,852,341) $ 239,880 2015-02-17 Agenda Packet 152 Page 322 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL PUBLIC FINANCING AUTHORITY YEAR ENDED JUNE 30,2014 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ $ $ 111,628 $ 111,628 Total Revenues - - 111,628 111,628 Expenditures: Current: General government 13,500 13,499 8,592 4,907 Public safety 6,000 6,000 4,295 1,705 Debt service: Principal retirement 4,235,000 4,235,000 52,645,000 (48,410,000) Interest and fiscal charges 6,060,065 6,710,066 6,510,358 199,708 Total Expenditures 10,314,565 10,964,565 59,168,245 (48,203,680) Excess(Deficiency)of Revenues Over(Under)Expenditures (10,314,565) (10,964,565) (59,056,617) (48,092,052) Other Financing Sources(Uses): Transfers in 10,094,215 14,048,215 9,658,967 (4,389,248) Transfers out - (4,271,003) (271,002) 4,000,001 Proceeds from the issuance of bonds 45,920,000 45,920,000 Bond premium 3,537,111 3,537,111 Total Other Financing Sources (Uses) 10,094,215 9,777,212 58,845,076 49,067,864 Net Change in Fund Balances (220,350) (1,187,353) (211,541) 975,812 Fund Balances,Beginning of Year 10,336,627 10,336,627 10,336,627 - Fund Balances,End of Year $ 10,116,277 $ 9,149,274 $ 10,125,086 $ 975,812 2015-02-17 Agenda Packet 153 Page 323 ;mp"FW CITY OF CHULAVISTA 2015-02-17 Agenda Packet 154 Page 324 NON-MAJOR PROPRIETARY FUNDS Bayfront Trolley Station — This fund is used to account for the maintenance and development of the Bayfront Trolley Station. Transit Fund — This fund is used to account for maintenance and development of the transit related projects. Sewer Development Impact Fees — This fund is a depository for sewer development impact fees (DIFs). Development Services Fund—This fund is a depository for a portion of developer fees and other development related activities. 2015-02-17 Agenda Packet 155 Page 325 CITY OF CHULA VISTA COMBINING STATEMENT OF NET POSITION NON-MAJOR PROPRIETARY FUNDS JUNE 30,2014 Business-Type Activities-Enterprise Funds Sewer Bayfront Development Development Trolley Station Transit Fund Impact Fees Services Fund Totals Assets: Current: Cash and investments $ 44,258 $ 145,011 $ 9,244,111 $ 581,392 $ 10,014,772 Receivables: Accounts - - - 101,836 101,836 Accrued interest - 885 11,250 2,403 14,538 Grants 40,841 138,491 - 179,332 Total Current Assets 85,099 284,387 9,255,361 685,631 10,310,478 Noncurrent: Capital assets-net of accumulated depreciation - 501,825 2,042,113 - 2,543,938 Total Noncurrent Assets - 501,825 2,042,113 - 2,543,938 Total Assets $ 85,099 $ 786,212 $ 11,297,474 $ 685,631 $ 12,854,416 Liabilities and Net Position: Liabilities: Current: Accounts payable $ 3,418 $ 560 $ 3,723 $ 28,506 $ 36,207 Accrued liabilities - 7,747 - 725 8,472 Uneared revenues 137,000 - 137,000 Accrued compensated absences - - 308,806 308,806 Total Current Liabilities 3,418 145,307 3,723 338,037 490,485 Noncurrent: Advances from other funds - - 4,228,226 - 4,228,226 Accrued compensated absences 18,766 34,312 53,078 Total Noncurrent Liabilities 18,766 4,228,226 34,312 4,281,304 Total Liabilities 3,418 164,073 4,231,949 372,349 4,771,789 Net Position: Investment in capital assets - 501,825 2,040,665 - 2,542,490 Unrestricted 81,681 120,314 5,024,860 313,282 5,540,137 Total Net Position 81,681 622,139 7,065,525 313,282 8,082,627 Total Liabilities and Net Position $ 85,099 $ 786,212 $ 11,297,474 $ 685,631 $ 12,854,416 2015-02-17 Agenda Packet 156 Page 326 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION NON-MAJOR PROPRIETARY FUNDS YEAR ENDED JUNE 30,2014 Business-Type Activities-Enterprise Funds Sewer Bayfront Development Development Trolley Station Transit Fund Impact Fees Services Fund Totals Operating Revenues: Sales and service charges $ $ 2,672,231 $ 268,092 $ 6,338,495 $ 9,278,818 Other 186,420 - 117 186,537 Total Operating Revenues 2,858,651 268,092 6,338,612 9,465,355 Operating Expenses: Administration and general 61,823 6,570,319 6,352 6,113,133 12,751,627 Depreciation expense - 303,457 60,000 - 363,457 Total Operating Expenses 61,823 6,873,776 66,352 6,113,133 13,115,084 Operating Income(Loss) (61,823) (4,015,125) 201,740 225,479 (3,649,729) Nonoperating Revenues(Expenses): Intergovernmental 143,504 3,656,854 - - 3,800,358 Interest revenue - 7,903 102,104 110,007 Interest expense - (62,927) (62,927) Gain(loss)on disposal ofcapital assets - 25,778 - 25,778 Total Nonoperating Revenues(Expenses) 143,504 3,690,535 39,177 - 3,873,216 Income(Loss)Before Transfers 81,681 (324,590) 240,917 225,479 223,487 Transfers in - 23,701 - 628,181 651,882 Transfers out - (34,750) (250,000) (1,143,810) (1,428,560) Changes in Net Position 81,681 (335,639) (9,083) (290,150) (553,191) Net Position: Beginning of Year - 957,778 7,074,608 603,432 8,635,818 End of Fiscal Year $ 81,681 $ 622,139 $ 7,065,525 $ 313,282 $ 8,082,627 2015-02-17 Agenda Packet 157 Page 327 CITY OF CHULA VISTA COMBINING STATEMENT OF CASH FLOWS NON-MAJOR PROPRIETARY FUNDS YEAR ENDED JUNE 30,2014 Business-Type Activities-Enterprise Funds Sewer Bayfront Development Development Trolley Station Transit Fund Impact Fees Services Fund Totals Cash Flows from Operating Activities: Cash received from customers and users $ (9,448) $ 2,132,710 $ 268,092 $ 6,528,181 $ 8,919,535 Cash paid to suppliers for goods and services 120 (3,856) 3,723 65,071 65,058 Cash paid to employees for services (61,823) (6,573,464) (6,352) (6,097,193) (12,738,832) Net Cash Provided(Used)by Operating Activities (71,151) (4,444,610) 265,463 496,059 (3,754,239) Cash Flows from Non-Capital Financing Activities: Cash transfers out (34,750) (187,072) (1,143,810) (1,365,632) Cash transfers in - 23,701 628,181 651,882 Repayment received from other funds 143,504 3,656,854 - 3,800,358 Grant subsidies (40,841) (138,491) (179,332) Net Cash Provided(Used)by Non-Capital Financing Activities 102,663 3,507,314 (187,072) (515,629) 2,907,276 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets - - (726) (726) Interest paid on capital debt - (62,927) (62,927) Proceeds from sales of capital assets 25,777 25,777 Net Cash Provided(Used)by Capital and Related Financing Activities 25,777 (63,653) (37,876) Cash Flows from Investing Activities: Interest received 7,980 102,442 (2,403) 108,019 Net Cash Provided(Used)by Investing Activities - 7,980 102,442 (2,403) 108,019 Net Increase(Decrease)in Cash and Cash Equivalents 31,512 (903,539) 117,180 (21,973) (776,820) Cash and Cash Equivalents at Beginning of Year 12,746 1,048,550 9,126,931 603,365 10,791,592 Cash and Cash Equivalents at End of Year $ 44,258 $ 145,011 $ 9,244,111 $ 581,392 $ 10,014,772 Reconciliation of Operating Income to Net Cash Provided(Used)by Operating Activities: Operating income(loss) $ (61,823) $ (4,015,125) $ 201,740 $ 225,479 $ (3,649,729) Adjustments to reconcile operating income(loss) net cash provided(used)by operating activities: Depreciation 303,457 60,000 - 363,457 (Increase)decrease in accounts receivable 4,749 - 189,569 194,318 (Increase)decrease in deposits receivable - - - (Increase)decrease in due from other governments - - (Increase)decrease in prepaid expense - - 71,588 71,588 Increase(decrease)in accounts payable 120 (4,998) 3,723 (49,275) (50,430) Increase(decrease)in due to other governments - - - - - Increase(decrease)in accrued liabilities 1,142 42,758 43,900 Increase(decrease)in unearned revenue (9,448) (730,690) - (740,138) Increase(decrease)in claims and judgments - - Increase(decrease)in compensated absences (3,145) - 15,940 12,795 Total Adjustments (9,328) (429,485) 63,723 270,580 (104,510) Net Cash Provided(Used)by Operating Activities $ (71,151) $ (4,444,610) $ 265,463 $ 496,059 $ (3,754,239) Non-Cash Investing,Capital,and Financing Activities: Acquisition of Capital Assets $ $ 696,512 $ - $ $ 696,512 2015-02-17 Agenda Packet 158 Page 328 INTERNAL SERVICE FUNDS Internal Service Funds are used to finance and account for special activities and services performed by a designated City department for other departments on a cost reimbursement basis. Fleet Management-This fund was established to account for vehicle and equipment services provided to City departments. Revenue accruing to this fund comes from charges to City departments benefiting from services provided. Technology Replacement - This fund was established to account for computer and other technology services provided to city departments. Revenue accruing to this fund comes from charges to city departments benefiting from services provided. Workers Compensation Fund- This fund is a depository for contributions made from all funds, which have personnel allocated to them, to pay for annual costs related to workers' compensation liabilities including the provision of an appropriate reserve to pay uninsured claims costs. The City is self-insured for amounts up to $1.0 million per occurrence. The amount of the reserve and the required annual transfer is determined by the Director of Finance, based on experience and consultation with the Risk Manager. In fiscal year 2010-11 the Workers Compensation Fund was moved from Fund 231 to Fund 398,this change is necessary to change the fund type from General Fund to internal service. 2015-02-17 Agenda Packet 159 Page 329 CITY OF CHULA VISTA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30,2014 Governmental Activities-Internal Service Funds Fleet Technology Workers Management Replacement Compensation Totals Assets: Current: Cash and investments $ 1,216,909 $ 602,650 $ 1,204,925 $ 3,024,484 Receivables: Accounts 3,665 - 8,555 12,220 Total Current Assets 1,220,574 602,650 1,213,480 3,036,704 Noncurrent: Capital assets-net of accumulated depreciation 1,061,223 - - 1,061,223 Total Noncurrent Assets 1,061,223 - - 1,061,223 Total Assets $ 2,281,797 $ 602,650 $ 1,213,480 $ 4,097,927 Liabilities and Net Position: Liabilities: Current: Accounts payable $ 305,163 $ $ $ 305,163 Accrued liabilities 40,682 40,682 Total Current Liabilities 345,845 345,845 Noncurrent: Accrued compensated absences 76,607 76,607 Total Noncurrent Liabilities 76,607 76,607 Total Liabilities 422,452 422,452 Net Position: Investment in capital assets 1,061,223 - 1,061,223 Unrestricted 798,122 602,650 1,213,480 2,614,252 Total Net Position 1,859,345 602,650 1,213,480 3,675,475 Total Liabilities and Net Position $ 2,281,797 $ 602,650 $ 1,213,480 $ 4,097,927 2015-02-17 Agenda Packet 160 Page 330 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30,2014 Governmental Activities-Internal Service Funds Fleet Technology Workers Management Replacement Compensation Totals Operating Revenues: Interdepartmental charges $ 3,574,705 $ $ 2,109,110 $ 5,683,815 Other 54,586 - 54,586 Total Operating Revenues 3,629,291 2,109,110 5,738,401 Operating Expenses: Administration and general 3,619,597 3,095,939 6,715,536 Depreciation expense 254,424 - 254,424 Total Operating Expenses 3,874,021 3,095,939 6,969,960 Operating Income(Loss) (244,730) (986,829) (1,231,559) Nonoperating Revenues(Expenses): Interest revenue 13,613 13,613 Gain(loss)on disposal ofcapital assets 20,850 20,850 Total Nonoperating Revenues(Expenses) 34,463 34,463 Income(Loss)Before Transfers (210,267) (986,829) (1,197,096) Transfers in 600,000 600,000 Transfers out (23,701) - (23,701) Changes in Net Position (233,968) 600,000 (986,829) (620,797) Net Position: Beginning of Year 2,093,313 2,650 2,200,309 4,296,272 End of Fiscal Year $ 1,859,345 $ 602,650 $ 1,213,480 $ 3,675,475 2015-02-17 Agenda Packet 161 Page 331 CITY OF CHULA VISTA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30,2014 Governmental Activities-Internal Service Funds Fleet Technology Workers Management Replacement Compensation Totals Cash Flows from Operating Activities: Cash received from/(paid to)interfund service provided $ 3,634,760 $ $ 2,100,555 $ 5,735,315 Cash paid to suppliers for goods and services 13,841 - 13,841 Cash paid to employees for services (3,611,644) (3,095,939) (6,707,583) Net Cash Provided(Used)by Operating Activities 36,957 (995,384) (958,427) Cash Flows from Non-Capital Financing Activities: Cash transfers out (23,701) (23,701) Cash transfers in 600,000 600,000 Net Cash Provided(Used)by Non-Capital Financing Activities (23,701) 600,000 576,299 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of eapital assets (560,976) - (560,976) Proceeds from sales of capital assets 45,824 45,824 Net Cash Provided(Used)by Capital and Related Financing Activities (515,152) (515,152) Cash Flows from Investing Activities: Interest received 13,613 13,613 Net Cash Provided(Used)by Investing Activities 13,613 - 13,613 Net Increase(Decrease)in Cash and Cash Equivalents (488,283) 600,000 (995,384) (883,667) Cash and Cash Equivalents at Beginning of Year 1,705,192 2,650 2,200,309 3,908,151 Cash and Cash Equivalents at End of Year $ 1,216,909 $ 602,650 $ 1,204,925 $ 3,024,484 Reconciliation of Operating Income to Net Cash Provided(Used)by Operating Activities: Operating income(loss) $ (244,730) $ $ (986,829) $(1,231,559) Adjustments to reconcile operating income(loss) net cash provided(used)by operating activities: Depreciation 254,424 254,424 (Increase)decrease in accounts receivable 5,469 (8,555) (3,086) Increase(decrease)in accounts payable 5,614 5,614 Increase(decrease)in accrued liabilities 8,227 8,227 Increase(decrease)in compensated absences 7,953 7,953 Total Adjustments 281,687 (8,555) 273,132 Net Cash Provided(Used)by Operating Activities $ 36,957 $ $ (995,384) $ (958,427) 2015-02-17 Agenda Packet 162 Page 332 FIDUCIARY FUNDS AGENCY FUNDS Agency Funds are used to account for assets held by the City in a trustee capacity for individuals, private organizations, other governments, and/or other funds. Flexible Spending Account—This fund accounts for employee health,medical, and dependent care benefits. Deferred Compensation—The City offers an Employee Deferred Compensation Plan created in accordance with Internal Revenue Code Section 457 to its employees, allowing them to defer or postpone receipt of income. Amounts so deferred may not be paid to the employee during employment with the City except for a catastrophic circumstance creating an undue financial hardship for the employee. The City has two deferred compensation administrators, ICMA-RC and Nationwide. The City deposits deferred compensation plan assets with ICMA-RC or Nationwide. Federal legislation requires that the assets of such plans be held in trust for the exclusive benefit of the plan participants and their beneficiaries. ICMA-RC and Nationwide act as the trustees for the plan's assets and the City is considered to have limited fiduciary responsibility for the plan's assets. Special Assessment District- This fund accounts for all money collected to pay for debt services of the various assessment districts for which the City acts as paying agent, but has no legal commitment or obligation. Miscellaneous Deposits—This fund accounts for all money collected to pay for certain deposits. 2015-02-17 Agenda Packet 163 Page 333 CITY OF CIIULA VISTA COMBINING STATEMENT OF NET POSITION ALL AGENCY FUNDS JUNE 30,2014 Flexible Special Spending Deferred Assessment Miscellaneous Account Compensation District Deposits Totals Assets: Pooled cash and investments $ 54,156 $ - $ 17,847,339 $ 215,225 $ 18,116,720 Restricted assets: Cash and investments with fiscal agents - 74,737,979 55,572,663 - 130,310,642 Total Assets $ 549156 $ 7497379979 $ 7394209002 $ 2159225 $ 14894279362 Liabilities: Accounts payable $ - $ - $ 1,881 $ - $ 1,881 Deposits payable - - 215,225 215,225 Due to other governments 54,156 - - - 54,156 Due to bond holders - 9,347,631 73,418,121 82,765,752 Deferred compensation liability - 65,390,348 - - 65,390,348 Total Liabilities S 54,156 S 74,737,979 S 73,420,002 S 215,225 S 148,427,362 2015-02-17 Agenda Packet 164 Page 334 CITY OF CHULA VISTA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2014 Balance Balance 7/1/2013 Additions Deductions 6/30/2014 Flexible SpendinE Account Assets: Pooled cash and investments $ 73,214 $ 20,802 $ 39,860 $ 54,156 Total Assets $ 73,214 $ 20,802 $ 39,860 $ 54,156 Liabilities: Due to other governments $ 94,016 $ - $ 39,860 $ 54,156 Due to external parties/other agencies (20,802) 20,802 Total Liabilities $ 73,214 $ 20,802 $ 39,860 $ 54,156 Deferred Compensation Assets: Restricted assets: Cash and investments with fiscal agents $ 65,390,348 $ 9,347,631 $ $ 74,737,979 Total Assets $ 65,390,348 $ 9,347,631 $ $ 74,737,979 Liabilities: Due to bondholders - 9,347,631 9,347,631 Deferred compensation liability 65,390,348 65,390,348 Total Liabilities $ 65,390,348 $ 9,347,631 $ $ 74,737,979 Special Assessment District Assets: Pooled cash and investments $ 10,043,432 $ 45,081,794 $ 37,277,887 $ 17,847,339 Restricted assets: Cash and investments with fiscal agents 74,710,627 109,956,346 129,094,310 55,572,663 Total Assets $ 84,754,059 $ 155,038,140 $ 166,372,197 $ 73,420,002 Liabilities: Accounts payable $ - $ 20,769 $ 18,888 $ 1,881 Due to bondholders 84,754,059 138,508,744 149,844,682 73,418,121 Total Liabilities $ 84,754,059 $ 138,529,513 $ 149,863,570 $ 73,420,002 Miscellaneous Deposits Assets: Pooled cash and investments $ 213,109 $ 21,816,072 $ 21,813,956 $ 215,225 Total Assets $ 213,109 $ 21,816,072 $ 21,813,956 $ 215,225 Liabilities: Accounts payable $ 234 $ - $ 234 $ - Deposits payable (2,047) 219,319 2,047 215,225 Due to bondholders 214,922 2,350 217,272 Total Liabilities $ 213,109 $ 221,669 $ 219,553 $ 215,225 Totals-All Agency Funds Assets: Pooled cash and investments S 10329,755 $ 66,918,668 $ 59,131,703 $ 18,116,720 Restricted assets: Cash and investments with fiscal agents 140,100975 119,303,977 129,094,310 130,310,642 Total Assets $ 150,430,730 $ 186,222,645 $ 188,226,013 $ 148,427,362 Liabilities: Accounts payable S 234 $ 20,769 $ 19,122 $ 1,881 Deposits payable (2,047) 219,319 2,047 215,225 Due to other governments 94,016 - 39,860 54,156 Due to bondholders 84,948,179 147,879,527 150,061,954 82,765,752 Deferred compensation liability 65,390,348 65,390,348 Total Liabilities S 150,430,730 S 148,119,615 S 150,122,983 $ 148,427,362 2015-02-17 Agenda Packet 165 Page 335 ;mp"FW CITY OF CHULAVISTA 2015-02-17 Agenda Packet 166 Page 336 STATISTICAL SECTION This part of the City of Chula Vista's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements,note disclosures,and required supplementary information says about the city's overall financial health. Table of Contents Pane No. Financial Trends 168-172 These schedules contain information to help the reader understand how the city's financial performance and well-being have changed over time. Revenue Capacity 173-176 These schedules contain information to help the reader assess the factors affecting the city's ability to generate its property and sales taxes. Debt Capacity 177-178 These schedules present information to help the reader assess the affordability of the city's current levels of outstanding debt and the city's ability to issue additional debt in the future. Demographic and Economic Information 179-183 These schedules offer demographic and economic indicators to help the reader understand the environment within which the city's financial activities take place and to help make comparisons over time and with other governments. Operating Information 184-186 These schedules contain information about the city's operations and resources to help the reader understand how the city's financial information relates to the services the city provides and the activities it performs. 2015-02-17 Agenda Packet 167 Page 337 v v° o 0000 � c�v M 'O N O V M Vl 01 Vl M 01 00 01 00 C, M N N 00 00 V 00 00 Vl �p O �O 00 00 ~O 00 0o N �O V O 0o N M Vl 00 O 00 N 00 N M --i N V V 00 Vl 00 N 00 N NO M V N �O M N V O Vl N 00 �O V 00 N 01 N l� 01 Vl 00 M O 'o 'T _O O) oo O C, O V V O� oo Vi M ~ '� r � N � O O M V l� Vl � 00 N 00 V Vl 00 EA EA � Vl 01 01 NO Vl r � Vl V �O Cl cC N V 01 M l� N V �O �O 01 00 V U O �O N M M 01 l� 00 V M N M V O EA EA H � y N�O 00 l- U O x O V cr, u us us u C3 w O _ _ .� 00 Vl �O O\ O �O O y M O M N Vl l� 00 �O rJy 00 01 cl V 00 N N O\ cl iFy a V O 'o M 00 Vi V D; 00 V �-� cC O O O M 01 r M rq N vi O, 'O O vi vi O O, 'O �O ,--i �o 'O N C, us us rq V N M 0r1 NO V O cl ON cl W, N oo 01 N r �p O N O, Cl Cl O 00 00 Op N r 01 M r 01 V NO 01 V1 M Vl V 00 00 U 01 N l� 01 V l- N Vl 00 00 V M O V 00 O\ O\ 00 N M � � N Q Q i O � a a � N °' °' z to to N U U N U U U ? 0UA N p ¢. N N N —. q N N 2015-02-17 Agenda Packet 168 Page 338 h M V'1 oc O 'n 'n fl C cl 00 00 .� M N 7 Q1 1'4- oo .� N r. � V� O O � N h M '/ 10 0, M Vi 0, h oo Vi N oo 10 _O 0, oo Q, h 7 N r. N r. 10 0, 0, 0, ~O M oc M O N O O N M l� 7 N C 7 N M 10 7 h r. 10 10 10 0, O oo O O 0, r. h N h 10 0o N M N M N o0 N to O N N oo O 0, 10 10 N O 'o 'o O 7 00 7 N oo N M M o0 0, 'o ' M I I I l0 7 00 h 01 M N cl oc 1p h lO h oc h M N h N 7 7 a, 7 h N M N _h 7 00 a, M 00 .� l0 V'1 1p 00 V'1 N p1 b N lc h cl p1 h N O h p1 of N M b M M N oo N �O 'n Q1 h oo h b bcl� cl b N M h 0, 'n 7 10 h 10 O 'n M r. 'n oo 'n h O N M M h 10 N to h 10 h oo C> r. N cl O O M O N M lc cl oo M 'n 7 h oc 'n N oc N oc oc V� oo O Vi M 7 O 7 01 O h oo Vi oo b y 0 0 M o0 O M 'n .� oo 10 O �O 'n N N M N oo 'n 'n 10 'n 7 00 0o M cl� M O oo b h 0 0o h N M 10 O N to N 10 00 0, 0, ' h r. 00 00 7 0, ' 0, _O 0, M O M o0 0o V� 10 0, O Q, 00 0o N 0, h 0, O cl h h Q1 r I lO cl h O oc O lO cl oc lO O h 7 h Vl O\ 00 N Vl Vl M 1O 01 Vl O\ 00 O\ h 10 01 N b N 01 O M N h p1 7 N M V'1 00 00 h 01 10 h 00 h 7 lO oc cl I I O O N r. I I h cl M I 0, 0, h 7 N 10 'n .--i 10 7 r. h h O h 7 0, h M M 7 N N N to 7 0, 'n M O o0 7 0 7 7 10 O O O 'n 7 0, O M h O h �O 7 N 0, 7 h cl cl l h M of oc O M lc O .� 0, M 10 00 7 0, 10 _h t 7 C> 'O M h M 0, M O N 7 N 10 h 0, 7 N M 0, O oo h r. O I oc oc O I 7 oc h I V� cl h h N N M N M N N V O 10 a, M 10 ' oo N 7 0 h 0 ' M 10 N 7 ha, fl M N O lO O oo 10 M M 10 oo h (a+ N 'n h oo r. 00 7 0o N lO cl r. � lO �O h 01 'n _h 7 O h o0 0o O Vi 'n 01 7 M 10 10 h 7 O 0, O O 10 r. 7 0, N O h oo 'n 'n 0, N O 'n oc 'n N cl N cl cl h h M cl h 'n N 0, b N 0, h M o0 0o M r. O 7 h h N N M N O M N r. H y •� tav r. F4 V O 10 oNO a, N M O oo O M 0 ra 1 A 7 7 O M �O 'n 'n O 7 O 'n 7 O oo N r. O V h 0 pp 0, M _O O N 'O N oo M M N oo .� M oo N ro oo N o0 xl w O O M 'n M 'n 01 O 0, N O 10 00 00 10 7 r. oo 0, M 0, O lO lO 7 lO k lO 7 M M N cl M V r p •� N .--i oo 10 01 0o M o0 0o O oo h o0 0o M r. 7 0 h O W y ti N N py V V O N oo O h ' M O O b r oo _h 'n _M 10 M h �O 'n N O h oo �O o0 c0 10 h �O N o0 0o Q1 'n b N N r 7 01 O N r r o0 01 O N _O O M 7 'n Vi .--i O b oo b 06 r 7 0 10 p N M M O N M 7 lO N M 'n .--i oo b b N M O N h h h 7 V� h Vi b Vi O to 'n O 7 O M ' oo O M 'n ' ' ' o0 0o O h 'n .--i h 0, r. O N N 'O O 'n 01 0, M 0, 00 00 00 00 0o M 7 N k .� cl oc k cl .� M M 10 10 h N Vi N_ M oo h 10 M N Vi o0 0, Vi M 7 7 O 10 W N 00 10 M 7 00 M h V'1 01 7 M 01 10 h h kn oc .--i O 7 N oc cl k h cl lc 7 C 7 N M N N oo O N Q, h h 10 M N 10 N h 7 10 M r. 'n N r. 'n O N N N to b ' b M 7 O ' ' ' 7 h h 10 h 'n oo O 01 N V� N oo �n oo O oo M h V� oo .--i b 0, 00 o_O 00 00 oc N r. cl Oo r. cl O cl M lO r. oo M h O 10 00 'n o0 7 N M 'n O N O 10 cl 00 O N 'n 0, 'n oo h 0, h N 'n N O O h oc lO 0, 7 V� k k k O h N N 7 lO N N M h oo N 7 h h N M 0, O 'n N N 0, N r. N N to A. O o k+ o �j!p O U'U3 p -0 O ob cYVC Si b�q �J b�q V u � > x V Y+r O V 'o 0 00 "@ Ya s. ai o C C ao B 7 7 cxid A H `�" H H 2 C7 P�-i P�-i Ya H LL W0C7a 00 0U 0 2015-02-17 Agenda Packet 169 Page 339 S O N V� m O, h N V� N 7 O, 00 7 7 N O 7 N O, 7 0 7 M �O V� M h V� .--i 7 h h 0 00 V� O O O O O O, N lO O 7 M o0 O � N 7 N cl O O O l O M N O, 00 N O 0o 00 O 10 O M 7 10 V� 7 10 .--i 7 7 C> V� r. O O 10 M 7 h M O 00 00 7 M 10 h 7 cl 00 V� 10 10 O O 10 GD oc N Cl m N 7 GD O o0 cl 10 GD h N N M 10 M 10 M M h 10 Ef3 01 00 V'1 � b 01 O h M N N O � N h h h 7 01 h 7 M M M O 10 C> b N�O o0 O M O N N o0 7 oc �O N O N h V� � V� 7 O h N o0 00 Mcl 7 r. cl 00 M 7 10 �n M N_ 10 h 10 10 10 Vi Vi 01 O 7 O M h 10 �n 7 7 N 10 10 M M 00 O b b O N 0o cl I 7 r. b cl 00 M o0 o0 0o .� N o0 N N V'1 10 M 00 M 7 0\ V'1 00 00 N M 0\ 01 M M 7 N M 7 7 O 7 N O, O, ... 01 10 00 O O M M 01 h 0 7 01 01 M N 10 10 O, 10 00 7 O, O I lc l 7 7 cl o0 O o0 lc h I N I .-. r. O lc cl N o0 O 10 h h M h Vi 7 N 7 7 01 h h h h N ' N 00 M N h M M 01 b h 7 h M 01 00 oc N N V� 7 O V� 7 h N 7 �O �n .-. h lO 7 N M 00 7 7 N N N 7 M M O o0 h O, h b M 7 N o0 r. r. N 7 O M M M 7 N ?. r. 7 N O N r. V'1 10 01 ' 00 00 7 Vl 01 b N M h N M 00 00 00 00 M 00 h 00 V'1 00 V'1 01 00 N h 10 N M N 7 00 10 M N I cl� fli 't lO lO h 00 00 7 h M h b M O _M h N V'1 00 M h 7 7 00 _M h V'1 01 00 V'1 7 10 00 M M N h 00 N N N M 00 7 M 01 10 h 01 N M M O M M b b O M 00 O 10 00 01 M 7 W h O h 01 h M M b 01 h 00 O M M M O M �n N �n O cl O lO lO lO h o0 o0 b o0 I cl 00 o0 h O Vi 7 �O h M o0 00 7 h 7 M O O M o0 b V� 7 GD O r 01 r N 7 GD r O O 10 M N M h r-:, lc cl h 10 O _ _ _ _ O O ' Go 01 N 01 GD b r b N V� h h 10 7 N N O �O o0 M a, h GD V� .--i N h O, N N r. C> GD 00 00 � M M � � O O O M N O 7 V� .--i � r. cl 16 N O 06 cl O M 6 cl M M 16 lr O 00 06 O kr O M N 06 M h * M 01 7 10 01 h � 10 7 h V'1 00 M _M 01 00 N 10 V'1 01 N lO O N M M 0o h M 7 M N lO lO M o0 r. O N o0 7 k lO h o0 V] i.i yy 01 O O N N N 7 M M ' M V'1 M 00 ON M ra h U A 00 7 v� cl O, 7 C k O M M O cl vi N N vi h O h N vi "'" Go O o0 O, m 7 7 N 10 00 N N M M 7 7 7 0 0 O 0, 10 M 10 M M h h 10 00 10 N 10 7 O, h h 7 h r. O, O cl lc M V� cl O, h 10 k 00 h o0 7 7 V � 01 V'1 10 7 .� N M M 01 00 k 00 00 Vl 1p 1p 1p Vl r V'1 O •� H m N M O M M V Go Go M N N r. N O V V O O o0 00 7 M N V� �O h 7 10 10 M c0 O O ao O N M .--� M ao .� O O 10 h vi 7 M M O M 7 N h 6 O h N h h h 01 N 7 h p M M O 7 0 7 00 ro O o0 M N 7 7 �O O N �n O O 7 �n p 7 7 h cl O cl o0 00 7 M r. lc l r. o0 cl lc h O N N N N N M h M M M M h 10 N N N h h h O N V� 7 0 V� 00 7 7 M o0 O 7 7 M 00 00 _ N C>O N a, >01 01 O o0 00 O 01 r C>O r b b 10 o0 10 h 7 h Vi GD Vi 10 N 10 10 00 00 N 7 _O O M 10 N N O, b O h h V� N 'O 10 h o0 N 7 O 10 M k k cl 0o O 0o k k .--i N •--� lc lc O •--� O h o0 o0 N N N 10 N O O 7 7 7 M 7 M O N M M 7 .� ti ti q 10 10 O fq yq O N O O, O M O N a, r. M 7 r. 00 h O O 7 M O, O o0 GD o0 00 O 10 7 .--i �O o0 p�j N O h cl � cl 7 7 7 M cl cl 7 00 r. 10 O 7 10 7 O M o0 00 7 O O 10 O, 7 O cl kr 7 p N M h N 01 N V'1 10 h O h h N M 01 01 V'1 N M V'1 7 10 O h O 7 N cl lc N M O N Olc Mlc o0 k n M M N 7 10 h N N 7 00 N h M M 00 7 7 7 N M O N N N N N O O O o0 00 N to � O � ry O LL 2 O � O 4 j 4C" Q ^O 7 °�' .0 .v ai o u o`b .v o .. v .v ooio i a w Ca o 000 oo o 'o o ob 0 0 yC YC o YC O bq Fo a Fo a ° K Po O > F > H H o� o H off aOF Hwa� H o H 2015-02-17 Agenda Packet 170 Page 340 01 7 h 7 ' M ' ' N O N 'n 10 M 00 'C N N cl 'n N 'n N N r. O r. M O � 'n p 7 N oo V� cl V� .--i lc 7 oC N h 10 7 7 N M h o O O r. M N tav tav r. ... sR 0, V N r. ' pp ' ' ' 10 h 'n oo N M h h 7 01 01 O O O cl M oo 0, 7 0, 10 h V� .�. h 10 7 h N lC h cl h N N N h N 'C O N N M to to 10 N O N N 0, h 0, 10 M 10 M 7 ON N O h M oc 0, O h 7 oc 7 N o0 7 N oo O M N h 0, N M W M OC EA � 6R O M oo 10 N M V'1 00 M M 01 O\ 7 M 01 7 IC .� oc oc I 01 M W h �C 01 M OC 0o h o0 00 10 O 0, 7 O N N 0` 10 7 h O 01 00 C> N N oc h lc cl M 7 O 7 N 'n r. 'n r. 0, h N 0, h to 10 7 O ' ' ' ' ' 7 0o M O 0, O O O O M N 7 M oc 7 h M O oo M N h O oo 'n oo M O C> oc N N M M V�Oi N 0� �U ta9 sR O m M 'n 7 V'1 V'1 lC M 00 ^O pq W N _h cl h N 'n N O O O M 7 ' C W •p fq O N M M 10 O N ON .� N M M h 7 0, y O V q O 10 10 �y cl 7 00 lc M 0 �C yy W p '" b C> N oo O M 7 7 lc cl W O V p O N fq M N 7 h 7 O O 7 VNi O fq O a, 7 7 w " C> N N 'n h 7 C 0o N N N M 'n 'n 7 N 7 00 N r. M 1 7 0, 'C h to to O O 10 7 Vi 0, 0, M O O .--i oho oho o�OO lC oO Vv'i ON 00 0, 7 N � h M -6 10 7 'n p O N Q N oo 10 N 10 r. h N M O cl N N O cl N M 'n O N .�. 1 C> N N 'n N o0 7 cl oo N N f 7 0, 0 7 O N O to to N h N N Q '0 O LL lob 000 0 ob 000 Z x U a x a ° z x U a x a 2015-02-17 Agenda Packet 171 Page 341 CITY OF CHULA VISTA Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Revenues: Taxes $ 85,192,455 $ 86,509,678 $ 93,100,434 $ 103,543,735 $ 91,770,846 $ 87,263,934 $ 88,878,664 $ 96,868,086 $ 82,450,711 $106,825,885 Licenses and permits 3,946,733 3,441,613 2,870,424 2,767,850 2,041,721 2,274,964 2,887,150 1,253,806 1,436,828 1,355,342 Fines and forfeitures 1,398,146 1,724,862 2,226,822 2,671,545 3,317,666 3,124,021 2,348,565 2,065,246 1,639,781 1,685,268 Investment income 10,199,902 7,946,878 13,570,315 10,890,132 10,103,986 6,299,595 8,716,624 5,077,920 2,929,237 4,681,473 Developer fees 22,625,331 50,551,528 24,058,397 17,318,134 9,252,547 11,700,991 16,498,744 13,966,814 21,742,856 9,515,921 Intergovernmental 43,647,460 41,847,938 36,107,073 43,962,835 39,497,983 41,965,596 48,177,707 21,861,011 40,953,981 28,647,410 Charges for services 41,850,292 43,823,886 52,694,312 15,679,753 12,435,955 11,877,763 11,743,505 20,907,330 23,440,813 20,765,146 Other 24,231,228 30,012,125 23,567,613 30,427,119 29,404,221 31,918,308 28,163,311 13,382,050 14,521,818 14,896,960 Total revenues 233,091,547 265,858,508 248,195,390 227,261,103 197,824,925 196,425,172 207,414,270 175,382,263 189,116,025 188,373,405 Expenditures Current: General government 46,054,981 49,628,483 46,904,990 49,596,883 43,640,514 45,966,934 39,701,396 23,833,011 25,544,079 29,341,881 Public safety 61,673,449 67,913,584 73,245,978 74,781,055 72,872,527 72,080,790 70,693,779 71,917,414 73,177,912 76,457,979 Public wor1. 56,220,867 72,296,203 75,720,582 57,789,303 46,042,781 45,778,665 48,056,229 47,911,105 48,416,477 40,894,934 Parks and recreation 5,369,192 6,210,040 7,503,259 6,869,089 6,969,924 5,255,812 4,030,767 4,215,643 3,471,548 3,590,441 Library 8,957,574 9,734,444 9,660,809 8,224,897 7,199,101 4,563,849 3,870,646 3,672,661 3,241,660 3,810,004 Capital outlay 61,134,157 72,988,853 36,472,182 29,525,186 19,305,564 27,628,148 34,215,021 16,182,888 21,144,133 15,347,338 Debt service: Principal retirement 4,936,247 6,054,618 30,892,802 7,884,493 7,686,525 7,301,362 7,911,995 8,423,156 5,113,992 54,040,855 Interest and fiscal charges 12,059,211 12,260,244 12,289,908 12,224,973 12,576,939 11,585,816 11,094,106 9,229,775 6,818,788 7,850,448 Bond issuance cost 514,994 34,485 844,584 Total expenditures 256,405,678 297,086,469 293,205,504 246,930,364 217,138,459 220,161,376 219,573,939 185,385,653 186,928,589 231,333,880 Excess(deficiency)of revenues over(under) expenditures (23,314,131) (31,227,961) (45,010,114) (19,669,261) (19,313,534) (23,736,204) (12,159,669) (10,003,390) 2,187,436 (42,960,475) Other financing sources(uses): Transfers in 84,773,947 55,698,112 53,900,545 26,104,914 50,502,425 61,296,934 56,989,583 33,900,786 20,113,296 30,478,465 Transfers out (84,678,601) (52,132,246) (53,835,509) (20,400,837) (46,589,803) (57,815,981) (53,551,865) (32,638,610) (16,551,879) (27,503,760) Proceeds from long-term debt 765,000 - - - 665,884 29,355,000 42,286 3,963,104 2,174,204 2,121,500 Proceeds from bond sale 37,240,000 21,255,000 25,760,000 10,264,224 21,625,000 207,372 - - - 45,920,000 Payment to escrow agent trust - - - - (15,110,000) (16,710,000) - - - - Bond premium/(bond discount) 35,254 - (505,884) - (579,161) (925,872) - - - 3,537,111 Proceeds from sale of capital assets 639,050 9,630,000 Total other financing sources(uses) 38,774,650 24,820,866 25,319,152 15,968,301 10,514,345 15,407,453 13,110,004 5,225,280 5,735,621 54,553,316 Extraordinary item: Forgiveness of debt - - - - - - - - - - Loss on dissolution of the Chula Vista Redevelopment Agency (3,191,040) Total extraordinary item (3,191,040) Net change in fund balances $ 15,460,519 $ (6,407,095) $(19,690,962) $ (3,700,960) $ (8,799,189) $ (8,328,751) $ 950,335 $ (7,969,150) $ 7,923,057 $ 11,592,841 Debt service as a percentage of noncapital expenditures 8.4% 10.1% 16.7% 8.8% 10.2% 9.6% 9.4% 10.1% 6.9% 30.3% Sewer funds were camerted to mr enterprise fund m fuml year 2008. 2015-02-17 Agenda Packet 172 Page 342 0 0 0 0 0 0 0 0 0 0 � 00 00 00 00 00 00 00 00 00 00 ai M M M M M M M M M M 0 _ U 0 U O U N M 00 M O 2 U 'C 0\ V1 V O 00 °, V1 N M N U Q" O U U M 00 00 N V V °, O M l� U, � D\ D\ 00 � � °� 00 N � Vl N .N-i M In O D\ V v1 �° N l� V v1 •� U 00 U U U cd; O � W � N y �' l� v1 V O V N V O U U O .�-i 00 AO N 00 00 N V O °, V1 N l� �° 00 O\ l� V1 \° � U •� °n \O O V N V M O M \0 O U ri C) � M Y- U N N N N (U •� 00 00 O °, O O Qy N . (U O l� l� v1 O 00 00 O C, cad y O C4 vii � N C m � _ Y sUiyy ,�-i vN1 ,N-i NO O v�1 O 00 U N y U V1 \O 00 V N V V1 O O o X 00 0 0 0 0 0 0 o w 0 � " o � +O'' u N r,3 O ., O 00 v1 O °T M N v1 00 C> N vii O N O 9 aU+ U V1 M N N V1 O V1 M \O 00 cc�C H 4 m �0a Z � vo 'n N rn rf' W) v v O c7' 0'zt V .� .�-i 00 V V N .--i O O " U N N N N N N N N U �+ U 7 40 N U .(z) CC M Vl V V VO M W >, N (U U O C40) O U U N N V1 O 00 O \O V M \O N 0 S o m O m v v N rn $ A. O \0 \0 N V V °� V1 M Gtr w � M 00 l� U N N N V kr� kr kr U U i U.., U r. V V V�1 V1 �O V�1 �O V1 V�1 .0 U V] ° w O -8 lu 00 O N M M V V1 ° 0 00 N N N l� 00 V � 00 N U °� OO V1 OO \O \O V OO l� N >, Y U Y Q � r v N r) oo r) 00 rn U C U w U oo v v N u �,. O C40) N N N N N N N N Q, O �" U U 0 y C > C O W y U \O l '>- OM V1 r-- 00 °, _O _ N_ _M V ° v� O rx"-+ k U -a U O O O O O ,--i N U N 00 O O O O O O O O O O O O W to ti k O U = 0 2015-02-17 Agenda Packet 173 Page 343 CITY OF CHULA VISTA Direct and Overlapping Property Tax Rates (Rate per$100 of assessed value) Last Ten Fiscal Years 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 City Direct Rates: City basic rate 0.1438 0.1438 0.1438 0.1438 0.1438 0.1438 0.1438 0.1438 0.1438 0.1438 Overlapping Rates: Chula Vista Elementary School 0.0281 0.0274 0.0266 0.0203 0.0176 0.0251 0.0261 0.0259 0.0253 0.0463 District Bonds Sweetwater Union High School 0.0182 0.0225 0.0202 0.0471 0.0462 0.0558 0.0552 0.0608 0.0586 0.0582 District Bonds Southwestern Community 0.0130 0.0151 0.0141 0.0125 0.0132 0.0344 0.0364 0.0331 0.0375 0.0368 College Bonds MWD D/S Remainder of 0.0058 0.0052 0.0047 0.0045 0.0043 0.0043 0.0037 0.0037 0.0035 0.0035 SDCWA 15019999 County of San Diego** 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Total Overlapping Rates 1.0651 1.0702 1.0656 1.0844 1.0813 1.1196 1.1214 1.1235 1.1249 1.1448 Breakdown of the County of San Diego 1.00 Rate:** County General 0.15920355 Gen Elem Chula Vista 0.29103670 High Sweetwater Union 0.18823068 Southwestern Community College 0.05072194 County School Service 0.00757296 County School Service-Capital Outlay 0.00190859 Childrens Institutions Tuition 0.00161434 Regional Occupational Centers 0.00483027 Chula Vista Project(19/84601) 0.00019695 Chula Vista Project(19/84602) 0.00039390 Educational Revenue Augmentation Fund 0.14676995 Chula Vista City 0.14375071 South Bay Irrigation 0.00000000 CWA South Bay Irrigation 0.00376946 San Diego Unified Port 0.00000000 Total 1.00000000 NOTE: In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00%fixed amount,property owners are charged taxes as a percentage of assessed property values for the payment of school bonds and other debt service. Overlapping rates may vary by tax rate area. The data listed in this table is representative of tax rate area 001001. Source: County of San Diego Property Tax Services 2015-02-17 Agenda Packet 174 Page 344 CITY OF CHULA VISTA Principal Property Tax Payers Current Year and Nine Years Ago 2014 2005 Percent of Percent of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Rohr Inc. $ 252,188,020 1 1.17% 165,712,468 1 1.08% JPB Development 226,747,987 2 1.05% - EQR Teresina LP 137,976,588 3 0.64% - Regulo Place Apartments Invest 92,415,852 4 0.43% - Chula Vista Center LLC 70,554,229 5 0.33% 95,000,000 3 0.62% Camden USA Inc 65,411,407 6 0.30% 110,037,078 2 0.72% Wal-Mart Stores Inc 51,681,393 7 0.24% - B R E Properties Inc 51,652,307 8 0.24% 75,912,505 4 0.49% SSBTLCREVLLC 51,485,601 9 0.24% - CostCo Wholesale Corp 44,653,537 10 0.21% - KB Home Coastal Inc - - 73,450,098 5 0.48% Duke Energy South Bay LLP - - 71,934,269 6 0.47% SSR Realty Advisors/CALSTRS - - 69,039,237 7 0.45% Cornerstone Summit at Eastlake - - 57,058,104 8 0.37% Eagle Lomas Verdes - - 53,889,142 9 0.35% Missions at Sunbow - - 51,713,205 10 0.34% $ 1,044,766,921 4.85% 823,746,106 5.37% The amounts shown above include assessed value data for both the City and the Redevelopment Successor Agency. Source: MuniServices,LLC County of San Diego Property Tax Services 2015-02-17 Agenda Packet 175 Page 345 CITY OF CHULA VISTA Property Tax Levies and Collections Last Ten Fiscal Years Collected within the Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date Year Ended for the Percent Subsequent Percent June 30 Fiscal Year 1 Amount of Levy Years 2 Amount of Levy 2005 18,652,193 18,324,623 98.24% 106,497 18,431,120 98.81% 2006 22,096,604 21,617,022 97.83% 162,806 21,779,828 98.57% 2007 25,159,692 24,409,063 97.02% 209,442 24,618,505 97.85% 2008 28,641,734 27,506,299 96.04% 460,875 27,967,174 97.64% 2009 29,304,771 28,147,698 96.05% 765,703 28,913,401 98.66% 2010 26,246,478 25,313,706 96.45% 538,429 25,852,135 98.50% 2011 25,325,126 24,773,002 97.82% 134,325 24,907,327 98.35% 2012 25,373,780 24,669,632 97.22% (35,474) 24,634,158 97.09% 2013 25,352,454 24,982,072 98.54% 117,973 25,100,045 99.00% 2014 26,063,753 25,758,225 98.83% 39,776 25,798,001 98.98% 1 Levy amounts do not include supplemental taxes. 2 Collection amounts represent delinquencies collected for all prior years during the current tax year. Total delinquent collections are reduced by any refunds processed from prior year tax collections. Source: County of San Diego Property Tax Services 2015-02-17 Agenda Packet 176 Page 346 CITY OF CHULA VISTA Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Fiscal Year Pension Tax Total Percentage Debt Ended Obligation Allocation Certificates of Governmental of Personal Per June 30 Bonds Bonds Loans Participation Activities Income 1 Capita 1 2005 12,991,962 41,240,000 8,193,481 127,599,255 190,024,698 2.09% 901 2006 11,795,000 40,295,000 9,811,786 144,240,000 206,141,786 2.17% 937 2007 10,415,000 41,275,000 9,573,012 139,845,000 201,108,012 2.07% 887 2008 8,820,000 40,185,000 19,304,342 135,045,000 203,354,342 2.06% 878 2009 7,000,000 45,830,000 18,736,012 130,580,000 202,146,012 2.01% 857 2010 4,980,000 44,925,000 17,686,144 139,700,000 207,291,144 2.10% 866 2011 2,655,000 43,985,000 16,876,860 136,060,000 199,576,860 1.96% 818 2012 - 43,005,000 19,673,344 132,290,000 194,968,344 1.84% 793 2013 - -Z 14,182,697 128,375,000 142,557,697 1.31% 572 2014 - z 18,366,623 121,650,000 140,016,623 1.29% 556 ' These ratios are calculated using personal income and population for the prior calendar year. 2 Tax Allocation Bonds transferred to Successor Agency and shown as fiduciary fund. Notes:Details regarding the City's outstanding debt can be found in the notes to the financial statements. 2015-02-17 Agenda Packet 177 Page 347 CITY OF CHULA VISTA Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (In Thousands, except Per Capita) Outstanding General Bonded Debt Fiscal Year Pension Tax Percent of Ended Obligation Allocation Assessed Per June 30 Bonds Bonds Total Value 1 Capita 2005 12,992 41,240 54,232 0.35% 257 2006 11,795 40,295 52,090 0.28% 237 2007 10,415 41,275 51,690 0.24% 228 2008 8,820 40,185 49,005 0.20% 212 2009 7,000 45,830 52,830 0.21% 224 2010 4,980 44,925 49,905 0.23% 208 2011 2,655 43,985 46,640 0.22% 191 2012 - 43,005 43,005 0.20% 175 2013 - 41,985 41,985 0.20% 168 2014 - 40,920 40,920 0.19% 163 General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which,the City has none). 1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California. 2015-02-17 Agenda Packet 178 Page 348 CITY OF CHULA VISTA Direct and Overlapping Debt June 30,2014 2013-14 Assessed Valuation: $21,646,268,909 Total Debt City's Share of OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/14 %Applicable(1) Debt 6/30/14 Metropolitan Water District $ 132,275,000 0.989% $ 1,308,200 Otay Municipal Water District,I.D.No.27 5,700,000 99.995 5,699,715 Southwestern Community College District 230,589,345 50.829 117,206,258 Sweetwater Union High School District 354,404,415 60.696 215,109,304 Chula Vista City School District 60,585,000 86.971 52,691,380 Chula Vista City School District Schools Facilities Improvement Dist 1 31,000,000 77.856 24,135,360 City of Chula Vista Community Facilities Districts 184,185,000 100. 184,185,000 Sweetwater Union High School District Community Facilities Districts 139,688,004 15.812-100. 131,314,844 Chula Vista City School District Community Facilities Districts 4,440,000 99.718 4,427,479 City of Chula Vista 1915 Act Bonds 19,637,996 100. 19,637,996 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 755,715,536 DIRECT AND OVERLAPPING GENERAL FUND DEBT: San Diego County General Fund Obligations $ 379,835,000 5.479% $ 20,811,160 San Diego County Pension Obligation Bonds 720,855,256 5.479 39,495,659 San Diego County Superintendent of Schools Obligations 16,125,000 5.479 883,489 Southwestern Community College District Certificates of Participation 1,160,000 50.829 589,616 Sweetwater Union High School District General Fund Obligations 42,475,000 60.696 25,780,626 Chula Vista City School District Certificates of Participation 141,895,000 86.971 123,407,500 City of Chula Vista Certificates of Participation 121,650,000 100 121,650,000 Section 108 Loan 7,913,000 100 7,913,000 Notes Payable 5,714,912 100 5,714,912 Capital Leases 2,047,312 100 2,047,312 Otay Municipal Water District Certificates of Participation 46,690,000 63.283 29,546,833 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 377,840,107 Less: Otay Municipal Water District Certificates of Participation 29,546,833 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 348,293,274 OVERLAPPING TAX INCREMENT DEBT(Successor Agency): $ 40,920,000 99.153-100.% $ 40,736,836 TOTAL DIRECT DEBT $ 137,325,224 TOTAL GROSS OVERLAPPING DEBT $1,036,967,256 TOTAL NET OVERLAPPING DEBT $1,007,420,423 GROSS COMBINED TOTAL DEBT $1,174,292,480 (2) NET COMBINED TOTAL DEBT $1,144,745,647 (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes,enterprise revenue,mortgage revenue and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity. Ratios to 2013-14 Assessed Valuation: Total Overlapping Tax and Assessment Debt.............................. 3.49% Total Direct Debt($121,650,000)......................................... 0.56% Gross Combined Total Debt................................................... 5.35% Net Combined Total Debt....................................................... 5.22% Ratios to Redevelopment Successor Agency Incremental Valuation($1,255,372,303): Total Overlapping Tax Increment Debt...................................... 3.25% 2015-02-17 Agenda Packet 179 Page 349 O �n N �n o0 0o O o N N N M l M M O V N 69 69 � 0 41 0 41 41 0 lc lc O O M O M M 10 Cl cD N a V N N V W Cl 4 N 69 69 Cl o t` o O 1 o N O nj 41 O O1 M N N M O O vi a, vi V V O N In lc V 00 M lO lO O M O Cl N Cl N 69 69 M o o V O V o O � O � N_ O N_ � O N V O O l-� � cl � O OCi N N N O V� o0 00 � N � 69 69 4 0 o O o O V o0 L y I n N 41 M O M O cD O CD M W W O W F O W NO Cl M ONi a o cD CD 10 0 > 10 N 10 °o oho v 0 w cD o O O F lc� v oo lo T 0 0o Cl oo V 0 U 0�0 V 0 a ss sA >N o- 3 O M M M O M M y > c3 N N O 00 .7s O V M O O W1 SL E CD M M 00 l� W U O E cd > 69 69 v�W O N •�W W >N O 10 lc� NI N O N � � U O M 10 o CD M rn N > 3 v m CD CD N oo N o Cl v to 0 o v 0o V .° nn'J m 0 o O o M o V N N o N CD O 10 10 M m W V N SL N c3 U .Ui N p > cd ctl a N c3 y [Q U Si U b U CO N U cn tb m U U m bA Q Q H H V] 2015-02-17 Agenda Packet 180 Page 350 CITY OF CHULA VISTA Pledged-Revenue Coverage Last Ten Fiscal Years Tax Allocation Bonds Fiscal Year Ended Tax Debt Service June 30 Increment Principal Interest Coverage 2005 8,939,444 885,000 2,855,288 2.39 2006 10,404,880 945,000 2,797,726 2.78 2007 11,935,618 995,000 2,735,150 3.20 2008 13,793,329 1,090,000 1,965,103 4.51 2009 13,781,683 870,000 1,728,722 5.30 2010 13,884,637 905,000 2,070,381 4.67 2011 13,822,938 940,000 2,032,665 4.65 2012 10,931,615 980,000 1,992,565 3.68 2013 3,949,717 1,020,000 1,948,865 1.33 2014 6,144,015 1,065,000 1,901,703 2.07 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. 2015-02-17 Agenda Packet 181 Page 351 u o v o vi oo r oc O N v U o o vi lc o0 o r N � U M M N N N M M M O O W O O O O O O O O O O ' O O O O O 00 O O O 00 U J N oo _O 7 M 7 7 0o N O 0 y. O 7 h oho O oho ON Vii 00, ooc Pr Cn a o M M � O 0 0 0 0 0 0 0 0 0 c YO oo LL U � Q 7 YC 1p o � O O 4,� N j � o cC o ° 0 0 0 c 0 0 o Q U O �n 7 'o 'o s� • oO ,� oo .-. .-. .-. .�. a�J U a (�y iTi O � W O o oo N (� O lo o ao ao v v vi vi vi a; vi vi O O V. i 4u c 13 lo O O O N M o6 o� o�F U Y. W °q r oo o0 0�0 oMO oNO oo '��' U "O yyryy..yyyy` W� a v cy V U cn '+ O W CE C o ° � o _ _ _ _ o o w ~N O O � .M-i lo O N � rn M M M M M M M M M M .^. OU 1. bD a x U w iUi U O U U O r o o, o, o0 0, v-. .-. O o, O V M M M M M M M M M M un oo o o 0 0 0 o 0 0 o U Pr 7 N — — O, o0 7 O, � o 7 7 M N r. r. .-. O r. O Q O a O U U aJ cn w U U .� rtrtt W U +a U a�J C u O U U Q �. 'p o 0 0 0 0 0 0 0 0 0 E a�- o v r o0 o0 o, o, o, o O o U r r r r r r r r r o0 o N o s7 o U cn o a Q o o O w 0o rn oo r r lo _� r N _M cn N pq O ,O ,O W W O O O, oc I h M O, O, M b ,O O, M V'1 O, .� cC o N N N N N N N N N N 'a U A W o OU 7 Yp 'p 7 V� ,O h oo O, O O O O O O r. O O O O O O O O O O ai U .. , N N N N N N N N N N o O cn z J 2015-02-17 Agenda Packet 182 Page 352 CITY OF CHULA VISTA Principal Employers Current Year and Nine Years Ago 2014 20051 Percent of Percent of Number of Total Number of Total Employer Employees Employment Employees Employment Sweetwater Union High School District 4,096 6.92% n/a n/a Chula Vista Elementary School District 2,803 4.73% n/a n/a Rohr Inc./Goodrich Aerospace 2,468 4.17% n/a n/a Sharp Chula Vista Medical Center 1,823 3.08% n/a n/a Southwestern Community College 1,699 2.87% n/a n/a Wal-Mart 1,239 2.09% n/a n/a City of Chula Vista 1,154 1.95% n/a n/a Scripps Mercy Hospital Chula Vista 1,132 1.91% n/a n/a Target 659 1.11% n/a n/a 24 Hour Fitness 568 0.96% n/a n/a 1 2005 data is not available. "Total Employment"as used above represents the total employment of all employers located within City limits. Source: State Employment Development Department City Finance Department Sweetwater Union High School District Chula Vista Elementary School District Southwestern Community College 2015-02-17 Agenda Packet 183 Page 353 CITY OF CHULA VISTA Full-time and Part-time City Employees by Function Last Ten Fiscal Years Full-Time and Part-time Employees as of June 30 Function 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 General government 193 380 324 302 272 273 258 269 282 312 Public safety 528 518 548 504 476 468 448 432 432 425 Public works/engr 335 198 237 188 181 175 155 159 164 161 Parks and recreation 175 230 242 223 169 164 112 115 115 130 Library 217 252 227 196 189 73 41 76 82 77 Planning and building 91 97 83 68 63 62 54 55 49 49 Total 1,539 1,675 1,661 1,481 1,350 1,215 1,068 1,106 1,124 1,154 Source:City Finance Department 2015-02-17 Agenda Packet 184 Page 354 CITY OF CHULA VISTA Operating Indicators by Function Last Ten Fiscal Years Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Police: Citizen-initiated calls for service 74,106 73,075 74,277 74,192 70,051 68,601 65,186 64,885 66,319 65,645 Fire: Number of emergency calls 9,907 n/a 14,853 14,548 14,983 11,490 11,319 12,863 12,950 14,787 Inspections n/a 1,780 2,119 n/a 3,676 2,898 2,389 2,205 2,390 2,262 Public works: Street resurfacing/maintenance 2 142,864 230,598 157,903 77,507 108,745 84,276 99,978 55,398 121,428 38,087 (square feet) Parks and recreation: Number of recreation classes 1,709 1,821 2,231 2,575 2,149 2,301 2,008 1,914 2,572 2,456 Number of facility rentals 680 610 855 1,217 969 1,175 1,524 2,028 1,915 1,781 Library: Circulation 1,414,295 1,467,799 1,344,115 1,265,720 1,160,139 985,157 952,847 982,688 992,005 954,071 Attendance 1,121,119 1,170,168 1,148,024 1,296,245 820,243 605,979 614,841 722,310 832,975 822,895 Sewer: New connections 1,934 488 529 165 468 469 287 646 968 553 Average daily sewage treatment 17.0 16.9 17.0 16.8 16.5 16.2 16.3 15.9 15.7 15.5 (millions of gallons) 'Figure for 2005 represents the calendar year instead of fiscal year. 2 Excludes filling of potholes and crack sealing. Note: Data is not available for the fiscal years marked as n/a. Source:City of Chula Vista 2015-02-17 Agenda Packet 185 Page 355 CITY OF CHULA VISTA Capital Assets Statisities by Function Last Ten Fiscal Years Fiscal Year Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Police: Stations 1 1 1 1 1 1 1 1 1 1 Fire: Fire stations 8 9 9 9 9 9 9 9 9 9 Public works: Streets(miles) 373.8 387.3 403.3 416.9 421.0 429.5 429.5 429.5 429.5 433.9 Streetlights 8,368 8,501 8,953 9,013 9,026 9,052 9,054 9,066 9,069 9,069 Traffic signals 199 220 238 253 267 267 268 269 273 273 Parks and recreation: Parks(acreage)' 406.4 482.8 504.1 504.1 504.1 504.1 523.1 530.7 530.7 527.7 Recreation facilities 9 12 12 12 11 11 11 11 11 11 Library: Libraries 2 2 2 2 2 2 2 3 3 3 Sewer: Sewer pipes(miles) 455.8 471.3 484.2 493.8 496.5 505.0 505.0 505.0 505.0 511.3 Storm drains(miles) 219.9 228.6 234.0 244.7 245.3 248.9 248.9 249.0 249.0 255.2 Maximum daily treatment capacity 20.9 20.9 20.9 20.9 20.9 20.9 20.9 20.9 20.9 20.9 (millions of gallons) Includes community,neighborhood,special purpose,mini,and urban parks. Source:City of Chula Vista 2015-02-17 Agenda Packet 186 Page 356 City of Chula Vista CTY CHUILAVISTA Staff Report File#: 15-0030, Item#: 8. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SPONSORSHIP OF HARBORFEST 2015 AND STARLIGHT PARADE 2015; AUTHORIZING THE FILING OF AN APPLICATION FOR A $25,000 COMMUNITY ENHANCEMENT GRANT FROM THE COUNTY OF SAN DIEGO, APPROVING THE REQUISITE RESOLUTION PROVIDED BY THE COUNTY; AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO SIGN AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE COUNTY OF SAN DIEGO AND RELATED DOCUMENTS RECOMMENDED ACTION Council adopt the resolution. SUMMARY The City of Chula Vista is committed to holding community events that promote the City and attract residents and visitors. The City is collaborating with local agencies and volunteers to hold HarborFest on August 22, 2015 and the Starlight Parade December 5, 2015. ENVIRONMENTAL REVIEW The Development Services Department Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378(b)(5) of the State CEQA Guidelines because the approval of an agreement for grant funds for the HarborFest and Starlight Parade, is an administrative activity that will not result in a direct or indirect physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION HarborFest 2015 The City of Chula Vista is collaborating with local agencies and volunteers to hold HarborFest in August 22, 2015. HarborFest is an exciting regional festival bringing 20,000 participants to Chula Vista; focusing the spotlight on the beautiful South Bay waterfront; and promoting shops, restaurants, recreational and cultural activities on Port Tidelands. Activities include entertainment, a Kids Zone, live music performances, a Culinary Festival and Wine and Craft Beer Garden, an Art Guild Celebration, a car and boat show, water activities, and other events. Starlight Parade 2015 The return of the Chula Vista Starlight Parade in 2014 was a great success. More than 25,000 City of Chula Vista Pagel of 2 Printed on 2/12/2015 2015-02-17 Agenda Packet powered by Lepage 357 File#: 15-0030, Item#: 8. spectators lined Third Avenue in the Village to watch more than 100 parade entries. From school bands to marching moms to a flatbed with swinging dancers and Santa on a fire truck - the Starlight Parade brought the magic of the holidays to Chula Vista's historic downtown. The City collaborates with the Third Avenue Village Association JAVA) to support Holiday in the Village and create a festive day of holiday activities. Work is underway to hold the Starlight Parade on Third Avenue on December 5, 2015. The attached resolution approves the sponsorship of these two signature events in Chula Vista — HarborFest 2015 and Starlight Parade 2015 — and the filing of an application for $25,000 with the County of San Diego for Community Enhancement Program Funding during the County's 2015-16 Fiscal Year. DECISION-MAKER CONFLICT Staff has determined that the action contemplated by this item is ministerial, secretarial, manual, or clerical in nature and, as such, does not require the Councilmembers to make or participate in making a governmental decision, pursuant to California Code of Regulations Title 2, section 18702.4 (a). Consequently, this item does not present a conflict under the Political Reform Act (Cal. Gov't Code 87100, et seq.). Staff is not independently aware, and has not been informed by any Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This event supports two Strategic Plan goals. HarborFest and the Starlight Parade advance the Economic Vitality goal by promoting the Bayfront and Third Avenue by bringing new and returning visitors to enjoy activities, shop, and dine The Connected Community Goal emphasizes activities, like HarborFest and the Starlight Parade, that enrich the community's quality of life. CURRENT YEAR FISCAL IMPACT There is no fiscal impact from authorizing the City Manager to sign an agreement to receive $25,000 in grant funding for HarborFest and the Starlight Parade from the County of San Diego. These one- time funds will be used to help offset the cost of the events. ONGOING FISCAL IMPACT The grant funds are for Fiscal Year 2015-16. There are no anticipated ongoing financial impacts related to this item. The goal is for HarborFest and the Starlight Parade to become self-supporting signature events promoting the City of Chula Vista. ATTACHMENTS County of San Diego Resolution Staff Contact:Anne Steinberger City of Chula Vista Page 2 of 2 Printed on 2/12/2015 2015-02-17 Agenda Packet Page 358 RESOLUTION OF THE BOARD OF DIRECTORS OF (Organization name) F WHEREAS, the County of San Diego Community Enhancement Program provides funding for r non-profit corporations for certain specified purposes; and 'k WHEREAS, the (Organization name) wants to file an application with County of San Diego for Community Enhancement Program funding. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of E t (Organization name) 1. Confirms that is a non-profit California corporation or a public agency under the laws of the State of California; 2. Approves the filing of an application with the County of San Diego for Community Enhancement Program funding during the County's 2015-2016 fiscal year; and 3. Authorizes the people listed below to sign a grant agreement with the County of San Diego for Community Enhancement funds for the 2015-2016 fiscal year. 1. Print Name: Signature: Title: 2. Print Name: Signature: Title: 3. Print Name: Signature: Title: Adopted on this day of , Secretary, Board of Directors Rev.12/14-Version 2 6 of 7 2015-02-17 Agenda Packet Page 359 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA A) APPROVING THE SPONSORSHIP OF HARBORFEST 2015 AND STARLIGHT PARADE 2015; B) AUTHORIZING THE FILING OF AN APPLICATION FOR A $25,000 COMMUNITY ENHANCEMENT GRANT FROM THE COUNTY OF SAN DIEGO AND APPROVING THE REQUISITE RESOLUTION PROVIDED BY THE COUNTY; AND, C) AUTHORIZING THE CITY MANAGER OR DESIGNEE TO SIGN AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE COUNTY OF SAN DIEGO AND RELATED DOCUMENTS WHEREAS, the City Council supports activities that attract residents and visitors to Chula Vista; and WHEREAS, HarborFest is an exciting regional festival, focusing the spotlight on the beautiful South Bay waterfront; featuring myriad activities including music and performances, boat tours, educational, community and maritime activities, and numerous booths and events that engage participants throughout the marina; and WHEREAS, the Starlight Parade is a beloved community event that brings thousands of people to Chula Vista's Third Avenue Village; attracts more than 100 parade entrants from marching bands, school entries, community entries, and beautiful floats to promote the holiday season; and WHEREAS, these community events attract participants from throughout the county and promote shops, restaurants, recreational and cultural activities in the City of Chula Vista; and WHEREAS, HarborFest 2015 and the Starlight Parade 2015 activities are supported in part from grants, sponsorships, event fees, and ticket sales; and WHEREAS the County of San Diego Community Enhancement Program provides funding for non-profit corporations or government/public agencies for certain specified purposes; and WHEREAS, the City of Chula Vista wants to file an application with the County of San Diego for Community Enhancement Program funding. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it 1. Approves Sponsorship of HarborFest 2015 and the Starlight Parade, and 2. Authorizes the filing of an application for a $25,000 Community Enhancement Grant from the County of San Diego and approving the 2015-02-17 Agenda Packet Page 360 requisite Resolution provided by the County, and 3. Authorizes the City Manager or Designee to sign an agreement between the City of Chula Vista and the County of San Diego and Related Documents Presented by Approved as to form by Gary Halbert Glen R. Googins City Manager City Attorney 2015-02-17 Agenda Packet Page 361 City of Chula Vista CTY CHUILAVISTA Staff Report File#: 14-0625, Item#: 9. CONSIDERATION OF AMENDMENTS TO CHULA VISTA MUNICIPAL CODE CHAPTER 19.09 (GROWTH MANAGEMENT), AND APPROVAL OF THE GROWTH MANAGEMENT PROGRAM IMPLEMENTATION MANUAL AND THE GROWTH MANAGEMENT PROGRAM DOCUMENT (Continued from January 27, 2015) A. ORDINANCE OF THE CITY OF CHULA VISTA APPROVING AMENDMENTS TO CHULA VISTA MUNICIPAL CODE CHAPTER 19.09 (GROWTH MANAGEMENT) (FIRST READING) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE GROWTH MANAGEMENT PROGRAM IMPLEMENTATION MANUAL TO REPLACE THE THRESHOLD STANDARDS AND GROWTH MANAGEMENT OVERSIGHT COMMITTEE POLICY, AND THE GROWTH MANAGEMENT PROGRAM DOCUMENT RECOMMENDED ACTION Council conduct the public hearing, place the ordinance on first reading and adopt the resolution. SUMMARY The City Council adopted the Threshold Standards and Growth Management Oversight Committee Policy ("Policy") in 1987 and the Growth Management Program document and "Growth Management" ordinance in 1991 , establishing Chula Vista's Growth Management Program. During the last high growth period in the early 2000's, questions arose as to whether our Growth Management Program provisions, largely developed almost 20 years prior, were still appropriate and effective. Council subsequently directed that a "top-to-bottom" review be conducted. The proposed updated "Growth Management" ordinance and Growth Management Program Implementation Manual are the outcome of that effort. Chula Vista experienced a growth boom that began in 1999 and continued through 2005. During that time period, the City Council requested that a comprehensive review of the "Growth Management" ordinance (Chapter 19.09 of the Chula Vista Municipal Code) and threshold standards for eleven city services or topics be conducted to make certain that they worked "in today's world." Therefore, staff undertook the process of comprehensively reviewing the city's Growth Management Program from "top-to-bottom," and hired a consultant (Economic & Planning Systems) to help work on an initial review of the Growth Management Program, which resulted in a white paper with observations and suggestions that was presented to Council in 2004. (This was in conjunction with the General Plan Update that was occurring at that time.) Council accepted the white paper and authorized a work program for undertaking a top-to-bottom review, and the preparation of resultant revisions to the city's Growth Management Program provisions. Some of the key policy questions in the white paper included: ■ Should threshold standards be revised to recognize the emerging urban policy objectives City of Chula Vista Page 1 of 11 Printed on 2/12/2015 2015-02-17 Agenda Packet powered by Leg age 362 File#: 14-0625, Item#: 9. within Western Chula Vista (Urban Core) versus the suburban development focus of the existing threshold standards? • Should threshold standards be updated to reflect new service delivery, measurement techniques, and review of their overall utility? Candidate updates included traffic modeling techniques and congestion monitoring methods, and fire and police service standards. • Should the city establish criteria and techniques that allow additional control of development activity, including requirements above and beyond the current focus on tentative maps? This included introducing building permit-based controls into the threshold standards, and considering whether to add the prospective use of annual development metering tools. • Should regional and intergovernmental cooperation efforts be improved? A specific example was formalization of increased cooperation with the school districts to assure that their respective school construction programs would be as timely as possible. With input from the consultant, all city departments, stakeholders and a series of GMOC commissioners (various GMOC annual reports since 2005 have recommended changes to the "Growth Management" ordinance and threshold standards), staff drafted proposed changes to the current "Growth Management" ordinance, which revises some of the threshold standards and adds or modifies some of the goals, objectives and implementation measures currently outlined in the Policy. Other proposed changes to the ordinance are discussed below, along with a discussion on the Growth Management Program Implementation Manual proposed to replace the existing Threshold Standards and Growth Management Oversight Committee Policy and Growth Management Program document. A meeting was held with stakeholders, including members of civic organizations and the development community, to seek input on the documents prepared. As a result, some changes were made and are discussed where applicable. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have a significant effect on the environment; therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION RECOMMENDATION At their November 12, 2014 meeting, the Planning Commission recommended that the City Council adopt an ordinance approving amendments to the "Growth Management" ordinance (5-0-0-2) and adopt a resolution adopting the Growth Management Program Implementation Manual (5-0-0-2). DISCUSSION Overview of Main Aspects of Revised Growth Management Documents City of Chula Vista Page 2 of 11 Printed on 2/12/2015 2015-02-17 Agenda Packet powered by Leg age 363 File#: 14-0625, Item#: 9. 1. New Growth Management Program Implementation Manual (see Attachment 1) Currently, there is not a single document that brings together all of the Growth Management Program components and processes into one integrated reference resource. The Growth Management Program document from 1991 has been outdated for several years, and primarily consists of initial facility and service status evaluations, similar to the ongoing evaluations that are done every year in the GMOC annual report. The document does not include information on programs such as Development Impact Fees (DIFs), which were developed after 1991 , or an evolution of growth management considerations in the development process. The 1987 Threshold Standards and Growth Management Oversight Committee Policy stipulates the GMOC's and the city's growth management responsibilities, in addition to establishing the threshold standards and all of their components. The fundamental purpose of the Growth Management Program Implementation Manual is to combine relevant information from both of these documents and create the reference resource that is missing from the Growth Management Program. The Growth Management Program Implementation Manual: ■ Explains the structure and organization of the Growth Management Program; ■ Outlines development review processes, standards and requirements as they relate to growth management; ■ Addresses the role of Facility Master Plans; ■ Explains financing programs; ■ Outlines implementation measures (such as issuing a "Statement of Concern" or considering a moratorium) ■ Includes content guides/requirements for Air Quality Improvement Plans, Water Conservation Plans and Public Facilities Finance Plans in its appendices. 2. Changes to the "Growth Management" Ordinance (Chapter 19.09 of the Chula Vista Municipal Code (CVMC)) (see Attachments 2 & 3) The primary revisions to the "Growth Management" ordinance are listed below: • Inserted the threshold standards' goals, objectives and implementation measures that are currently part of the Threshold Standards and Growth Management Oversight Committee Policy document. Significant changes were made to the goals for Traffic and Fiscal; less significant changes were made to the goals for Schools, Sewer and Water. • Implementation measures updated, for all of the threshold standards. • Added references to Facility Master Plans in threshold standards for Fire and Emergency Services, Parks and Recreation, Libraries and Schools. • Made "Statement of Concern" available for any threshold standard, except Fiscal and Parks and Recreation, which have other implementation measures more appropriate for those topics. • Established applicable moratorium considerations to building permit level instead of tentative City of Chula Vista Page 3 of 11 Printed on 2/12/2015 2015-02-17 Agenda Packet powered by Leg age 364 File#: 14-0625, Item#: 9. maps. • Moved detailed PFFP content requirements to the appendices section of the Growth Management Program's Implementation Manual. • Refreshed and updated policy statements, findings and definitions to reflect current context. • Updated threshold standards to reflect contemporary considerations, as further described below. The following is an overview of the specific changes to each of the threshold standards: Police-Priority 2 The Police-Priority 2 threshold standard has been out of compliance for 16 consecutive years. The GMOC's 2010 Annual Report reviewed the history of non-compliance and concluded that a change was appropriate. The current Priority 2 threshold standard requires that 57 percent of the Priority 2 calls be responded to within 7 minutes and that an average response time to all Priority 2 calls of 7.5 minutes or less be maintained. As part of the top-to-bottom process, the Police Department conducted research on the origins of the city's Priority 2 threshold standard and the standards of other police agencies both in California and nationally. They discovered that the current threshold's response times may be a poor reflection of the actual real-world time for two reasons: 1) a "normalization" calculation currently applied is not appropriate; and 2) the reporting method is not consistent with industry standards. For example, the Chula Vista and San Diego police departments are the only police departments in San Diego County that calculate their response times on "route to arrive," which is the time from when the call is routed from the call-taker to the dispatcher who dispatches an officer to the call, until the time an officer arrives on scene. The other police departments in the County calculate their response time averages by "received to arrive," which is the time from when the call is initially received to when the officer arrives on scene. Consequently, those response times are longer, and average between 12 and 13 minutes. Based on this information, and in an effort to be more consistent industry-wide, the proposed Police- Priority 2 threshold standard as proposed is: Priority 2 Urgent Calls*. Properly equipped and staffed police units shall respond to all Priority 2 calls within 12 minutes or less (measured annually). *Priority 2 - Urgent Calls are misdemeanors in progress;possibility of injury; serious non-routine calls (domestic violence or other disturbances with potential for violence); burglar alarms. Response: Immediate response by one or more officers from clear units or those on interruptible activities (traffic, field interviews, etc.). Police-Priority 1 City of Chula Vista Page 4 of 11 Printed on 2/12/2015 2015-02-17 Agenda Packet powered by Legage 365 File#: 14-0625, Item#: 9. The current threshold standard requires properly equipped and staffed police units to respond to 81 percent of Priority 1 calls within 7 minutes and maintain an average response time to all Priority 1 calls of 5.5 minutes or less. Based on the discussion above regarding using the industry standard "Received to Arrive", the proposed Police-Priority 1 threshold standard reflects that change, and is proposed as follows: Priority 1-Emergency Calls*. Properly equipped and staffed police units shall respond to at least 81% of Priority 1 calls throughout the city within 7 minutes 30 seconds and shall maintain an average response time of 6 minutes or less for all Priority 1 calls (measured annually) *Priority 1-Emergency Calls are life-threatening calls; felony in progress;probability of injury (crime or accident); robbery or panic alarms; urgent cover calls from officers. Air Quality The Air Quality threshold standard, as currently written, does not incorporate a quantifiable benchmark or mechanism to measure whether or not specific growth management goals are being met. Also, reporting on air quality conditions is done on a subregional basis, and is influenced by factors outside of the City's control. The Air Quality Annual Report required by the threshold standard is more of an informational report to provide updates on Chula Vista's involvement with air quality issues. The GMOC's 2009 Annual Report brought up this issue, noting that it is "difficult to determine whether or not compliance is maintained." The GMOC also noted that because greenhouse gas emissions are influenced by a variety of environmental issues, such as water use, energy consumption, transportation levels and solid waste disposal, a more specific greenhouse gas emissions standard could be especially useful for assessing cumulative growth impacts. A new quantitative standard would also allow City staff to more effectively identify actions and resources to address related air quality compliance concerns. This would also better align with the City's other Climate Action Planning efforts. The report recommended that the threshold standard should be revised to include incremental, quantitative benchmarks, such as including a benchmark to attain a 20% decrease in greenhouse gas emissions per capita, compared to the Climate Protection Program's 1990 emissions inventory. And since Chula Vista has been actively implementing the council-adopted Climate Control Program since 2008, combining "climate protection" with the Air Quality threshold standard made sense. The proposed Air Quality and Climate Protection threshold standard, below, establishes a quantifiable benchmark that factors in greenhouse gas emissions: The city shall pursue a greenhouse gas emissions reduction target consistent with appropriate city climate change and energy efficiency regulations in effect at the time of project application for SPA plans or for the following, subject to the discretion of the Development Services Director: 1. Residential projects of 50 or more residential dwelling units or greater; or 2. Commercial projects of 12 or more acres (or equivalent square footage), or 3. Industrial projects of 24 or more acres (or equivalent square footage), or City of Chula Vista Page 5 of 11 Printed on 2/12/2015 istar 2015-02-17 Agenda Packet powered by Leg age 366 File#: 14-0625, Item#: 9. 4. Mixed use projects of 50 equivalent dwelling units or greater. The existing threshold measure, which requires an annual report and distributing it to the Air Pollution Control District (APCD), becomes an Implementation Measure. A previous draft of this threshold standard did not include the language "for SPA plans" or "subject to the discretion of the Development Services Director". This was added after input from the stakeholder meeting to ensure that subsequent SPA implementing projects would not be required to meet additional standards other than those prescribed in the Air Quality Improvement Plan (AQIP) Guidelines. Fiscal Similar to Air Quality, the current Fiscal threshold standard does not incorporate quantifiable benchmarks or mechanisms to measure whether or not specific growth management goals are being met. Therefore, the following two new threshold standards are proposed: 1. Fiscal Impact Analyses and Public Facilities Finance Plans, at the time they are adopted, shall ensure that new development offsets the cost of development. 2. The city shall establish and maintain, at sufficient levels to ensure the timely delivery of infrastructure and services needed to support growth consistent with the threshold standards, development impact fee, capital improvement funding, and other necessary funding programs or mechanisms. The existing threshold standard provisions, which require that the GMOC be provided with an annual fiscal impact report and a development impact fee report, become implementation measures. The Growth Management Implementation Manual states that Fiscal Impact Analyses are required "with all SPA Plans and TMs, and for the following, subject to the discretion of the Development Services Director: development proposals of 50 dwelling units or more, and commercial or industrial projects with 50 equivalent dwelling units (EDUs) or greater." As a result of the stakeholder's meeting, the language "subject to the discretion of the Development Services Director" was added to ensure that subsequent SPA implementing projects would not be required. Traffic There are currently two threshold standards for Traffic. The first one is for citywide maintenance of level-of-service (LOS) "C" on identified arterial and major roadway corridors. The second one has been outdated for many years and is specific to certain intersections "West of Interstate 805" that were not meeting the threshold when it was adopted (1991), stating that signalized intersections that do not meet the first threshold standard may continue to operate at their current LOS, but not worsen. The proposed changes to the threshold standards follow up and incorporate provisions of the 2005 General Plan Update (GPU). The focus of the first threshold standard continues to be "arterial level- of-service" (ALOS), while the second threshold standard addresses "urban level-of-service" (ULOS), which the GPU allows to have a lesser vehicular LOS on a select set of arterial roadway segments, primarily within the city's Urban Core area, as identified therein. The intent is to slow automobile City of Chula Vista Page 6 of 11 Printed on 2/12/2015 istar 2015-02-17 Agenda Packet powered by Leg age 367 File#: 14-0625, Item#: 9. traffic in favor of promoting pedestrian activity, bicycles and transit. The two threshold standards proposed are below: 1. Arterial Level of Service (ALOS) for Non-Urban Streets: Those Traffic Monitoring Program (TMP) roadway segments classified as other than Urban Streets in the "Land Use and Transportation Element" of the city's General Plan shall maintain LOS "C" or better as measured by observed average travel speed on those segments, except that during peak hours, LOS `D"can occur for no more than two hours of the day. 2. Urban Street Level of Service (ULOS): Those TMP roadway segments classified as Urban Streets in the "Land Use and Transportation"Element of the city's General Plan shall maintain LOS "D" or better, as measured by observed or predicted average travel speed, except that during peak hours, LOS "E"can occur for no more than two hours per day. At the stakeholder's meeting, there was discussion about S13743, which requires the governor of California to amend CEQA to provide an alternative to LOS for evaluating transit impacts. Since those amendments have not yet been made, it would be premature to amend the Traffic threshold standards by substituting LOS with other methodology. After the CEQA amendments have been made, however, the proposed Traffic threshold standards may be amended. Parks and Recreation The GMOC's 2009 Annual Report recommended that the existing threshold standard for Parks and Recreation be changed to apply citywide. The existing threshold standard specifies that three acres of neighborhood and community parkland with appropriate facilities shall be provided per 1,000 residents east of Interstate 805. However, as development in western Chula Vista occurs, population growth will require additional park and recreation facilities in that area as well. In fact, the City's Parkland Development Ordinance (PDO) already applies citywide, and all new development is required to contribute to provision of parkland at the rate of three acres/1000 new residents created by that development. Revising the threshold standard will make it consistent with the PDO. Therefore, the following threshold standard is proposed: 1 . Three acres of public parkland, with appropriate facilities, shall be provided per 1,000 residents for new development, citywide. The 2009 report also recommended a second threshold standard: That park demand created by new development west of Interstate 805 shall be met by new park facilities in Chula Vista west of Interstate 805. This was in recognition of the fact that much of western Chula Vista was historically developed absent contemporary parks standards, making it all the more important that new development in the area provide for parks in the area. At this time, however, staff is not recommending that a second threshold standard be adopted, but rather that it be considered in conjunction with forthcoming actions on the city's parks master plan and Parkland Acquisition and Development (PAD) fee structure. The threshold standard would be inconsistent with a potential citywide combined park development impact fee, where projects could be prioritized throughout the system. City of Chula Vista Page 7 of 11 Printed on 2/12/2015 istar 2015-02-17 Agenda Packet powered by Leg age 368 File#: 14-0625, Item#: 9. Libraries The existing threshold for libraries requires construction of 60,000 gross square feet (GSF) of additional library space, over the June 30, 2000 GSF total, in the area east of Interstate 805 by build- out, phased such that that the citywide ratio of 500 GSF per 1 ,000 population will be maintained. The library facilities are to be adequately equipped and staffed. The city has been unable to maintain the ratio of 500 GSF per 1 ,000 population for the past ten years and is not expected to achieve compliance with the threshold standard for several more. However, the standard of 500 GSF per 1 ,000 population is a commonly used standard throughout the country, which was confirmed by the consultant who worked on the library facility master plan. Therefore, the proposed threshold standard does not change the existing ratio, but eliminates the section regarding construction of new facilities because that is a statement of an end result, not a threshold standard. The proposed threshold standard is: The city shall not fall below the city-wide ratio of 500 gross square feet (GSF) of library space, adequately equipped and staffed, per 1,000 population. Fire and Emergency Services The proposed changes to the threshold standard for Fire and Emergency Services are minor, simply adding the words "at least" before "80 percent", and clarifying how response time is measured: Emergency Response: Properly equipped and staffed fire and medical units shall respond to calls throughout the city within 7 minutes in at least 80 percent of the cases (measured annually). Notes: For growth management purposes, response time includes dispatch, turnout and travel time to the building or site address. Drainage There are two threshold standards for Drainage, and the first one currently specifies complying with the subdivision manual. The proposed threshold standard states: 1. Storm water flows and volumes shall not exceed city engineering standards and shall comply with current local, state and federal regulations, as may be amended from time to time. The words "with respect to the impacts of new development" have been added to the second threshold standard to make the focus clearer: 2. The GMOC shall annually review the performance of the city's storm drain system, with respect to the impacts of new development, to determine its ability to meet the goal and objective for drainage. Schools Minor modifications are proposed to the Schools threshold standard. The names of the school districts are now spelled out, and "5-year" forecast replaces the words "12 to 18-month" forecast because the existing language is outdated. The following threshold standard is proposed: City of Chula Vista Page 8 of 11 Printed on 2/12/2015 istar 2015-02-17 Agenda Packet powered by Leg age 369 File#: 14-0625, Item#: 9. The city shall annually provide the Chula Vista Elementary School District (CVESD) and the Sweetwater Union High School District (SUHSD) with the city's annual 5-year residential forecast and request an evaluation of their ability to accommodate forecasted growth, both citywide and by subarea. Replies from the school districts should address the following: 1. Amount of current classroom and "essential facility"capacity now used or committed; 2. Ability to absorb forecasted growth in affected facilities and identification of what facilities need to be upgraded or added over the next five years, 3. Evaluation of funding and site availability for projected new facilities identified; and 4. Other relevant information the school district(s) desire(s) to communicate to the city and the Growth Management Oversight Commission (GMOC). Water There are two threshold standards for Water, and the first one requires a service availability letter from the water district for each project. To make the threshold standard clearer, the sentence "Adequate water supply must be available to serve new development" has been added to the beginning of it: 1. Adequate water supply shall be available to serve new development. Therefore, developers shall provide the city with a service availability letter from the appropriate water district for each project. The wording in the second threshold standard has been changed slightly, and refers to the growth forecast as a "5-year residential growth forecast, rather than a "12- to18-month development forecast" because the existing language is outdated. The following threshold standard is proposed: 2. The city shall annually provide the San Diego County Water Authority, the Sweetwater Authority, and the Otay Municipal Water District with the city's annual 5-year residential growth forecast and request that they provide an evaluation of their ability to accommodate forecasted growth. Replies should address the following: a. Water availability to the city and planning area, considering both short- and long-term perspectives, b. Identify current and projected demand, and the amount of current capacity, including storage capacity, now used or committed; c. Ability of current and projected facilities to absorb forecasted growth, d. Evaluation of funding and site availability for projected new facilities, e. Other relevant information the district(s) desire(s) to communicate to the city and Growth Management Oversight Commission (GMOC). Sewer There are two threshold standards for Sewer, and the words "existing and projected facility" and "current system and budgeted improvements" have been added to the first one to make it clearer. The proposed threshold standard states: City of Chula Vista Page 9 of 11 Printed on 2/12/2015 istar 2015-02-17 Agenda Packet powered by Leg age 370 File#: 14-0625, Item#: 9. 1. Existing and projected facility sewage flows and volumes shall not exceed city engineering standards for the current system and for budgeted improvements, as set forth in the Subdivision Manual. The second threshold standard has been amended to include the possibility of wastewater treatment sources other than the San Diego Metropolitan Wastewater Authority and reads as follows.. 2. The city shall annually ensure adequate contracted capacity in the San Diego Metropolitan Sewer Authority or other means sufficient to meet the projected needs of development. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500-foot rule found in California Code of Regulations section 18704.2 (a)(1), is not applicable to this decision. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. Updates to the Growth Management Program maintain the threshold standards that support the Strategic Plan's major goals, including the Fiscal threshold standard, which supports the Economic Vitality goal, "encouraging policies, planning, infrastructure, and services that are fundamental to an economically strong, vibrant city." The Air Quality, Libraries and Parks and Recreation threshold standards support the Healthy Communities goal, promoting "an environment that fosters health and wellness and providing parks, open spaces, outdoor experiences, libraries and recreational opportunities that residents can enjoy." And the Police, Fire and Emergency Services, Traffic, Sewer and Drainage threshold standards support the Strong and Secure Neighborhoods goal, ensuring "a sustainable and well-maintained infrastructure to provide safe and appealing communities to live, work and play" and maintaining "a responsive Emergency Management Program." CURRENT YEAR FISCAL IMPACT Staff costs associated with the preparation of the proposed documents are covered within the adopted budgets of the various participating City departments. Adoption of the updated documents will not directly result in fiscal impacts. ONGOING FISCAL IMPACT City Departments' monitoring efforts needed to report annual compliance with any revised threshold standards will continue as they have in prior years. Actual field measured conditions will now simply be reported in relation to the revised standards. Staff costs associated with these monitoring efforts will continue to be included for Council consideration as part of each involved department's annual City of Chula Vista Page 10 of 11 Printed on 2/12/2015 2015-02-17 Agenda Packet Page 371 File#: 14-0625, Item#: 9. City budget adoption process. General Fund support for these efforts will continue to be offset by development fees, to the extent legally permissible. Any new project level requirements will be implemented through the development review process, which is funded by development processing fees. The fiscal impacts from the new standards will also be evaluated through the City's fiscal impact analysis process for future new development. These project specific analyses will continue to be funded by private development. While the anticipated fiscal impact of each project will be presented to the City Council in conjunction with the project approval process, actual fiscal impacts will vary based upon regional economic factors and local legislative actions. As such, the ongoing ability of the City to meet the threshold standards may vary, and cannot be directly attributed to new development. ATTACHMENTS 1 . Draft Growth Management Program Implementation Manual and Appendices A-C 2. Draft "Growth Management" Ordinance (CVMC 19.09) - Strike-out Underline Version 3. Draft "Growth Management" Ordinance (CVMC 19.09) - Accepted Edits Version Staff Contact: Kimberly Vander Bie, Associate Planner, Advance Planning, Development Services Department City of Chula Vista Page 11 of 11 Printed on 2/12/2015 2015-02-17 Agenda Packet powered by Leg age 372 aiY OF CHULA VISTA CITY OF CHULA VISTA GROWTH MANAGEMENT PROGRAM IMPLEMENTATION MANUAL .JANUARY 2015 2015-02-17 Agenda Packet Page 373 CITY OF CHULA VISTA, CALIFORNIA GROWTH MANAGEMENT PROGRAM IMPLEMENTATION MANUAL CITY COUNCIL Mayor Mary Casillas Salas Patricia Aguilar Pamela Bensoussan John cCann ir CITY STAFF Kimberly Vander Bie —Associate Planner Ed Batchelder— Planning Manager 06 CONSULTANT ECONOMIC& PLANNING SYSTEMS 2295 GATEWAY OAKS DRIVE, SUITE 250 SACRAMENTO, CA 95833 ADOPTED JANUARY 13, 2015 RESOLUTION NO. 2 2015-02-17 Agenda Packet Page 374 TABLE OF CONTENTS PAGE No. I. INTRODUCTION 5-6 II. BACKGROUND 6-7 III. SUMMARY OF GROWTH MANAGEMENT PROGRAM 7-10 IV. COMPONENTS OF THE GROWTH MANAGEMENT PROGRAM 10-31 A. GROWTH MANAGEMENT PROGRAM DOCUMENTS 10-23 1. THRESHOLD STANDARDS AND GROWTH MANAGEMENT OVERSIGHT COMMISSION POLICY 12-13 2. "CONTROLLED RESIDENTIAL DEVELOPMENT" (AKA"CUMMINGS INITIATIVE") (CHAPTER 19.80 OF CHULA VISTA MUNICIPAL CODE) 13 3. GROWTH MANAGEMENT ELEMENT OF CHULA VISTAS GENERAL PLAN 13-14 4. "PUBLIC FACILITIES AND SERVICES ELEMENT"OF CHULA VISTA'S GENERAL PLAN 14 5. GROWTH MANAGEMENT PROGRAM 14-15 6. "GROWTH MANAGEMENT OVERSIGHT COMMISSION (GMOC)" ORDINANCE 15 (CHAPTER 2.40 OF THE CHULA VISTA MUNICIPAL CODE) 7. "GROWTH MANAGEMENT"ORDINANCE 15-18 (CHAPTER 19.09 OF THE CHULA VISTA MUNICIPAL CODE) 8. "GENERAL RULES FOR BOARDS AND COMMISSIONS" ORDINANCE 18 (CHAPTER 2.25 OF THE CHULA VISTA MUNICIPAL CODE) 9. GROWTH MANAGEMENT OVERSIGHTCOMMISSION's(GMOC'S)ANNUAL REPORT 18 10. ANNUAL RESIDENTIAL GROWTH FORECAST AND AGENCY RESPONSES 19 11. FACILITY MASTER PLANS 19-20 12. AIR QUALITY IMPROVEMENT PLANS 20 13. WATER CONSERVATION PLANS 20 14. PUBLIC FACILITY FINANCE PLANS 20-21 15. FISCAL IMPACT FEES 21 16. GROWTH MANAGEMENT PROGRAM IMPLEMENTATION MANUAL 21-22 B. GROWTH MANAGEMENT-RELATED REGULATORY PROGRAMS 21-31 1. GROWTH MANAGEMENT OVERSIGHT COMMISSION (GMOC) 23-24 2. DEVELOPMENT IMPACT FEES 2-25 3. CAPITAL IMPROVEMENT PROGRAM 26 4. COMMUNITY FACILITIES DISTRICTS,ASSESSMENT DISTRICTS AND BONDS 26 5. INTERGOVERNMENTAL AGREEMENTS 27-28 3 2015-02-17 Agenda Packet Page 375 PAGE No. 6. DEVELOPMENT REVIEW PROCESS 28-29 7. ENVIRONMENTAL ANALYSIS 29 8. DEVELOPMENT AGREEMENT 30 9. TRAFFIC MONITORING PROGRAM 30 10. BUILDING PERMIT MORATORIUM 30-31 V. ADMINISTERING THE GROWTH MANAGEMENT PROGRAM 31-34 A. CITY STAFF RESPONSIBILITIES 31 B. GROWTH MANAGEMENT OVERSIGHT COMMISSION RESPONSIBILITIES 32 C. PLANNING COMMISSION AND CITY COUNCIL RESPONSIBILITIES 33-34 LIST OF TABLES TABLE 1-GROWTH MANAGEMENT PROGRAM DOCUMENTS ? 11-13 TABLE 2-SUMMARY OF THRESHOLD STANDARDS 17-18 TABLE 3-GROWTH MANAGEMENT-RELATED REGULATORY PROGRAMS 22-23 TABLE 4-THREE-TIERED DEVELOPMENT REVIEW PROCESS 29 LIST OF FIGURES FIGURE 1-GROWTH MANAGEMENT PROGRAM PROCESS 8 ',"' . FIGURE 2- IMPLEMENTATION ROLES AND RESPONSIBILITIES 33 APPENDICES APPEND - I ALITY I PROVEMENT PLAN GUIDELINES APPENDIX B-W TER CONSERVATION PLAN GUIDELINES APPENDIX EQUIREMENTS FOR PREPARATION, REVIEW AND IMPLEMENTATION OF PUBLIC FACILITY FINANCE PLANS 4 2015-02-17 Agenda Packet Page 376 I. Introduction The purpose of the Growth Management Program Implementation Manual(Manual) is to provide direction for implementing the city of Chula Vista's Growth Management Program, outlined in the"Growth Management Element" of the city's General Plan and in its"Growth Management" ordinance (Chapter 19.09 of the Chula Vista Municipal Code(CVMC)). The Manual sets out the procedures and requirements for how the Growth Management Program is administered, including how growth management policies integrate with other aspects of development regulation, finance, and municipal operations. The multi-faceted Growth Management Program is comprised of and executed through several documents and related regulatory programs, and includes a systematic application of land use regulations and policies, facility and service threshold standards, environmental review, financing mechanisms, and monitoring and enforcement functions. All are designed to ensure that development occurs only when necessary public facilities and services are provided to meet the demands of new development, so that quality of life in Chula Vista can be maintained or enhanced. The city's Growth Management Oversight Commission (GMOC) annually measures the city's quality of life by measuring the effects of growth against established performance threshold standards that reflect desired levels of services for eleven issues, and evaluates the city's ability to meet quality of life objectives at the build- out of its General Plan. While the focus is on the effects of new development, other factors not entirely related to new development can influence threshold compliance and/or quality of life. For instance, response times for Police and Fire/EMS encompass all calls for service citywide, not just those related to new development, and thereby may be impacted by circumstances unrelated to growth. In addition to the GMOC, other city boards and commissions or city departments may take the lead in addressing issues related to the city's quality of life. For example, the Police Department annually provides response time data to the Public Safety Subcommittee and the Chief's Advisory Committee, the Board of Library Trustees and the Parks and Recreation Commission advise on subjects such as facilities and master plans, and the Resource Conservation Commission makes recommendations on topics such as climate change and energy efficiency. The eleven quality of life issues that are measured annually by the GMOC have been integrated into the day-to-day workings of city business and that of involved agencies for the 25-plus years since growth management was instituted. Preservation of quality of life lies at the heart of the city's Growth Management Program and, as Chula Vista continues to grow, it will remain a vital component of the growth management process. In essence,the Growth Management Program has three primary objectives in managing quality of life: • To assure the concurrency of new infrastructure and public service delivery capacity to maintain or improve levels of public service for the residents and businesses of Chula Vista as new growth occurs; • To maintain the city's fiscal well-being by assuring that new development pays its proportional share of infrastructure and service costs while it strengthens the city's ability to sustain high-quality municipal services; and 5 2015-02-17 Agenda Packet Page 377 ■ To assure that growth does not negatively affect the public health, safety and welfare or diminish the city's ability to achieve its urban development goals as expressed in the General Plan. The Growth Management Program Implementation Manual begins by providing background information on the Growth Management Program ("GMP"). Next, it provides a summary of how the elements of the GMP function and interface with each other. Finally, the Manual explains the processes and procedures for administering the GMP. II. Background Chula Vista, the second largest city in San Diego County, was incorporated in 1911 and grew steadily and incrementally until the 1980s,when large-scale development began to occur in the eastern part of the city. In that decade, Chula Vista expanded its boundaries with large undeveloped ranch lands east of Interstate 805, establishing significant opportunities for the city to work with developers in providing high-quality master- planned communities, such as Rancho del Rey and Eastlake, the first of many master-planned communities in eastern Chula Vista. At that time, there was serious concern that poorly managed growth could strain the city's ability to provide public services,worsen existing traffic problems, and lead to an overall reduction in service levels and the quality of life of its residents. To ensure that adequate infrastructure and services were keeping pace with development and that quality of life was being maintained,the Chula Vista city council appointed an ad hoc committee to develop quality of life threshold standards for the city. The concept was to establish performance standards reflecting either current or desired levels of service, and then measure the effects of growth against those standards each year. In this way, the city could use the standards to evaluate its ability to meet quality of life objectives at the build-out of its General Plan, and also monitor the standards annually as growth occurred to ensure that they were being met. The ad hoc committee, consisting of representatives from community groups,the city's planning commission, and the development community, met several times over a period of months. They selected and defined threshold standards for eleven topics, including Police, Fire and Emergency Medical Services, Schools, Libraries, Parks and Recreation,Water, Sewer, Drainage,Traffic,Air Quality and Fiscal, which were introduced in a document called Threshold Standards and Growth Management Oversight Committee Policy(approved by city council in November 1987). The Policy defined a program that could preserve and enhance Chula Vista's public services and quality of life while growth occurs, requiring an annual citywide threshold compliance review assigned to a Growth Management Oversight Committee (GMOC) (now a commission),who must report through the planning commission to the city council, which holds a public hearing to discuss the report and take any necessary actions. The GMOC's review and report are intended to be completed prior to council budget workshops so that threshold situations, which may require funding for solution, can be accommodated during the regular budget process. Initiated by the Threshold Standards and Growth Management Oversight Committee Policy, the city adopted the following growth management documents between 1987 and 1991: 6 2015-02-17 Agenda Packet Page 378 1. "Controlled Residential Development" ordinance (aka the "Cummings Initiative") (Chapter 19.80 of the Chula Vista Municipal Code) (1988); 2. "Public Facilities and Services" element of the Chula Vista General Plan (1989); 3. "Growth Management Element"of the Chula Vista General Plan (April 17, 1990); 4. Growth Management Program (April 23, 1991); 5. "Growth Management Oversight Commission (GMOC)" ordinance (Chapter 2.40 of the Chula Vista Municipal Code) (May 7, 1991); and 6. "Growth Management" ordinance (Chapter 19.09 of the Chula Vista Municipal Code) (May 28, 1991). Since 1989, some minor changes have been made to the threshold standards, and the Threshold Standards Policy and the "Growth Management" ordinance have been updated,accordingly. The "Growth Management Components" section (Section IV) of this Manual goes into greater detail regarding these documents and various others, which are vital tools in accomplishing the Growth Management Program's ultimate goal of maintaining and improving a high quality of life for current and future residents of Chula Vista. In addition to growth management documents, the "Components" section summarizes various growth management regulatory programs that have been established to fund and/or are essential for the Growth Management Program to function effectively, including: 1. Development Impact Fees; 2. Intergovernmental Agreements; 3. Capital Improvement Programs; and 4. Community Facility Districts, amongst others. The growth management documents and regulatory programs are supplemented by coordination with other agencies (school districts, water districts and the Air Pollution Control District) to monitor the effects of growth on the city. In the 25 plus years since the Growth Management Program was established, additional master-planned communities have evolved in the east, including Otay Ranch, Rolling Hills Ranch, and San Miguel Ranch, resulting in over 30,000 new housing units between 1986 and 2014. Concurrent with this growth has been the provision of public facilities and services that have generally maintained the community's quality of life, consistent with the intent of the Growth Management Program. As development continues in both eastern and western Chula Vista,the city will continue to implement the Growth Management Program to help maintain and improve the quality of life for its citizens. III. Summary of Chula Vista's Growth Management Program Chula Vista's Growth Management Program (GMP) is based upon policies set forth in the Chula Vista General Plan's"Growth Management Element", and in the"Growth Management" ordinance (Chapter 19.09 of the Chula Vista Municipal Code), which outlines the procedures for threshold standards and related regulatory actions, and the imposition of growth controls. The GMP policies are implemented through three fundamental aspects—Forward Planning, Development Processing, and Monitoring/Tracking, providing a stable and balanced method for carrying out the GMP. 7 2015-02-17 Agenda Packet Page 379 The roles and functions of each of these three aspects are illustrated in Figure 1, below, and are subsequently introduced and explained. FIGURE 1— GROWTH MANAGEMENT PROGRAM PROCESS Forward Planning Development Processing Monitoring/Tracking General Plan- oex.elopment proposal submitted Annual Development Forecasts- • Establishes land uses for facilities • 5-}eartimeframe and services ■ Supports completion of annual GWC • Groudh Management Element and threshold corrpliance questionnaires Public Facilities and Services Element PC Zone Non-PC Zone Prepare General Prepare crtysponwred GMOCAnnualReport- D&.elopned Phan[GOP) specil�c plan . Yeady check and balance on effects of actual development adi*0n threshold compliance Facility and Service Master Plans- Identification of any necessary remedial + lkeGP land uses toidentifyfacility& Prepare CEQA PrepareCEQA • actions forPCK)7 consideration service needsto ensure Threshold decunrani document Standard compliance at buildout Development Tracking- PrepareSPAPlanand Prepare PF FP and Fiscal .Table updated monthly PFFP and F tscalAnalysis Analysis .Shows#of units(SF,MF)at each stage of D evekopment Impact Fees- project implementation(SPA Plan,TM,FM,BP • Apportion costs for provding buildout issued,occupanc)j facilities&seruces(per MasterPlans)to •Assists PFFP&conditions rronitoring individual units of remaining development bytWe(res,corrmercial,industrial)(EDUs) • Regularly reuenedfor need to update PFFP&Project ConciitionsMoritoring- concidering changing land uses,costs, •Track timelyimplementati0n of phasing anWor other circumstances requirements&other SPAFM conditions relative to maintaining thresholds compliance Ktigation Monitoring&Reporting Programs PA RP)- •Ensures anyGEQA rritigation measures related to threshold compliance are irrplemerted. A. Forward PI , n n Forward planning begins with Chula Vista's General Plan, which has been updated twice since the inception of the city's Growth Management Program in 1987. Threshold standards are incorporated in the General Plan as policies and, when the General Plan is updated or amended, are used to analyze and provide technical analysis of the facility and service demands of the General Plan's land use proposals to determine whether they would comply with the threshold standards at General Plan build-out. The General Plan's"Growth Management Element" establishes policy basis for growth management provisions, and the "Public Facilities and Services Element" establishes the city's plan to provide and maintain infrastructure and public services for future growth, without diminishing services to existing development. 8 2015-02-17 Agenda Packet Page 380 Based upon the General Plan's land uses, the city's operating departments prepare various Facility and Service Master Plans, which underpin long-term threshold standard compliance by clarifying the obligations of new development with regard to a particular type of facility, such as parks or fire stations. The operating departments, as well as other agencies providing services in Chula Vista, also develop "strategic plans" that outline service demands and how these demands will be met. The city regularly interfaces with the water districts and school districts when they prepare their master plans and facility needs analyses. To ensure that capital facilities will be constructed for the benefit of new development, Development Impact Fees(DIF)are to be paid for each development project within the city. DIFs are one-time charges that fund capital construction of additional sewer systems, roads, libraries, parks and recreation facilities, etc. made necessary by the presence of new residents in the area and as outlined in the facility master plans. Costs are apportioned to individual units of remaining development by type (residential, commercial, industrial) and are regularly reviewed for potential updates considering changing land uses, costs and/or other circumstances. B. Development Processing The GMP is woven throughout the citywide development review process for projects to determine the possible impacts of the project and to apply appropriate conditions and requirements in order to mitigate those impacts. For projects in the Planned Community zone, threshold standards are integrated into the city's development review process in a three-tiered manner, involving preparation of a General Development Plan (GDP), the preparation of a Sectional Planning Area (SPA) Plan with a corresponding Public Facilities Finance Plan (PFFP)/Fiscal Impact Analysis (FIA), and a Tentative Map. This process establishes basic land use and development provisions, completes initial environmental review under CEQA, provides a framework for subsequent environmental review and actions, and establishes mechanisms and assurances that threshold standards can be met as development is actually occurring. This approach has served the city well in managing growth in eastern Chula Vista. For projects outside of the PC zone, a different approach to regulation has been established to manage development and redevelopment. This approach relies upon the preparation of city-sponsored specific plans and corresponding PFFPs (or equivalents), as well as a regulatory framework that accounts for the smaller size of urban infill projects and the related need for public investments. Growth management considerations for smaller projects outside of the PC zone are addressed through the CEQA process, which may result in mitigation measures; through conditions of approval,which may require improvements or dedications; and through payment of Development Impact Fees. C. Monitoring/Tracking-Given that the above noted project reviews and condition are based on assumptions about phasing and growth patterns, monitoring and evaluation of actual development is necessary to determine if assumptions were correct, and, if not, to be able to make adjustments as needed. Monitoring the status of development and compliance with the city's Growth Management Program is also done to ensure that the cumulative impacts of new growth do not result in deterioration of 9 2015-02-17 Agenda Packet Page 381 quality of life, as measured by the threshold standards. The monitoring is accomplished through various methods. One such method is the GMOC's Annual Report,which analyzes the effects of actual development activity on threshold standard compliance and identifies any necessary remedial actions for the planning commission and city council to consider. The report relies on responses to questionnaires completed by city departments and service agencies related to threshold standard topics. The questionnaires include a Residential Development Forecasts looking out five years, to provide agencies and departments with growth projections that may generate the need for additional services. kJ06�, Development Tracking is another tool used to monitor growth. The Development Services Department produces a table monthly to track the number of single-family and multi-family units at each stage of project implementation: SPA Plan,Tentative Map, Final Map, Building Permit Issued and Occupancy. The information is useful in tracking timely implementation of Public Facility Financing Plans (PFFPS) phasing requirements and other SPA Plan or Tentative Map conditions relative to maintaining compliance with threshold standards. #"q% Is Implementation of CEQA mitigation measures through Mitigation Monitoring& Reporting Programs (MMRPs) is another method used to assure threshold compliance. IV. Components of the Growth Management Program The Threshold Standards and Growth Management Oversight Committee Policy adopted by city council in 1987 was the first of several documents and regulatory programs that have established the framework of Chula Vista's Growth Management Program, and provide for its implementation. The functions of the various documents and regulatory programs are outlined in Tables 1 and 3 of this chapter, respectively, followed by detailed descriptions of each. The status of each document and program is also noted in the tables, as some of them have been amended or consolidated with others since their inception. TABLE 1— GROWTH MANAGEMENT PROGRAM DOCUMENTS Document Function Status 1. Threshold Standards and Growth Established Chula Vista's Growth Adopted by city council in Management Oversight Management Program,identifying November 1987;replaced and Committee[Commission]Policy* goals,objectives,threshold incorporated into the Growth standards,and implementation Management Program measures for 11 topics,and outlining Implementation Manual in 2014. responsibilities of Growth Management Oversight Commission. (See item 7,below,for more discussion on threshold standards.) 2."Controlled Residential Required council to adopt growth Adopted by city voters in 1988. Development"ordinance(aka management documents and Cummings Initiative)(Ch.19.80 of restricted timing for upzoning of 10 2015-02-17 Agenda Packet Page 382 Document Function Status Chula Vista Municipal Code) residential property in non-planned community areas. 3. "Growth Management Establishes policy basis for growth Established in 1989 General Plan Element"of General Plan management provisions. and revised in 2005 as part of General Plan update. 4."Public Facilities and Services Establishes the city's plan to provide Established in 1989 General Plan Element"of General Plan and maintain infrastructure and and revised in 2005 as part of public services for future growth, General Plan update. without diminishing services to existing development. MIL 5.Growth Management Program Implementation system to meet the Adopted by city council in April goals and objectives of the General 1991; replaced and incorporated Plan and the"Growth Management into the Growth Management Element." Program Implementation Manual in 2014. 6. "Growth Management Oversight Outlines functions,duties and Adopted by city council in May Commission"Ordinance(Ch.2.40 of regulations of the GMOC. It is 1991 and last amended in 2011. Chula Vista Municipal Code) supplemented by Ch.2.25,described in no.8,below. 7."Growth Management"Ordinance Legally establishes threshold Adopted by city council in 1991 (Ch.19.09 of Chula Vista Municipal standards,administration,and and last amended in 2014. Code) compliance requirements and mechanisms. 8. "General Rules for Boards and Outlines membership and operations Adopted by city council in 2008 Commissions"(Ch.2.25 of the information for city commissions, and last updated in 2011. Chula Vista Municipal Code) including the GMOC. It supplements Ch.2.40,described in no.6,above. 9."Growth Management Oversight Updates planning commission and 2014 Annual Report presented to Commission's Annual Report" city council re:status of threshold planning commission and city standards compliance,identifies council May 2014. Available concerns,makes recommendations. online. 1%�, 10."Annual Residential Growth Prepared by city staff with developer 2015 Forecast published in Forecast"and Agency Responses input,includes historical data and September 2014 and distributed to " projected number of building permits city departments and outside so to be issued over the next five years. agencies that monitor threshold It is used to assist city departments standards. Included in Appendices and outside agencies to evaluate to each GMOC Annual Report and possible threshold compliance issues. available online. 11. Facility Master Plans Based on the General Plan,provide Completed and periodically plans and preliminary design revised since 1987 by individual specifications for various major city departments. See page 20 for infrastructure and facilities to ensure a list. threshold compliance at build-out. 12. Air Quality Improvement Plans Provide an analysis of air pollution Required with all SPA Plans,TMs 11 2015-02-17 Agenda Packet Page 383 Document Function Status impacts and a means of improving air and development proposals of 50 quality for development proposals. dwelling units or more,and commercial or industrial projects with 50 equivalent dwelling units (EDUs)or greater. See Appendix A for preparation requirements. 13. Water Conservation Plans Provide an analysis of water usage Required with all SPA Plans,TMs and a plan of conservation measures. and development proposals of 50 dwelling units or more,and commercial or industrial projects with 50 equivalent dwelling units (EDUs)or greater. See Appendix B for preparation requirements. 14. Public Facility Financing Plans Identify cost,financial responsibility, Required with all SPA Plans,TMs (PFFPs) and proposed financing method for and development proposals of 50 each public facility,and a phasing dwelling units or more,and plan to ensure threshold compliance commercial or industrial projects during project construction. with 50 equivalent dwelling units (EDUs)or greater. See Appendix C for preparation requirements. 15.Fiscal Impact Analyses(FIA) To estimate the impact of a Required with all SPA Plans and development or a land use change on TMs,and for the following,subject the costs and revenues to the city to the discretion of the associated with the development. Development Services Director: Developments must have a positive development proposals of 50 fiscal impact,or provide backstop dwelling units or more,and funding for any negative years. commercial or industrial projects with 50 equivalent dwelling units (EDUs)or greater. 16.Growth Management Program Sets out the procedures and Adopted by city council in 2014,it Implementation Manual establishes requirements for how the incorporates and replaces both the Growth Management Program is prior Threshold Standards and administered,including how growth Growth Management Oversight management policies integrate with Commission Policy and the Growth other aspects of development Management Program documents. regulation,finance,and municipal operations. A. Growth Management Program Documents 1. Threshold Standards and Growth Management Oversight Commission Policy (Adopted by the City Council in November 1987) The Threshold Standards and Growth Management Oversight Commission Policy("Policy') established Chula Vista's Growth Management Program, identifying goals, objectives, threshold standards, and 12 2015-02-17 Agenda Packet Page 384 implementation measures for eleven topics, and outlining responsibilities of the Growth Management Oversight Commission. The eleven topics identified include: Air Quality, Drainage, Fiscal, Fire and Emergency Services, Libraries, Parks and Recreation, Police, Schools, Sewer,Transportation and Water. The information was updated and subsequently incorporated into the Chula Vista Municipal Code (chapters 2.40 and 19.09), which were most recently updated in 2011 and 2014, respectively, and replaces the Policy document. See item 7, below, for more discussion on threshold standards. 2. "Controlled Residential Development" Ordinance (aka the "Cummings Initiative"), Chapter 19.80 of the Chula Vista Municipal Code (1988) In 1988, Chula Vista voters adopted the Cummings Initiative (Initiative), which is codified in the Chula Vista Municipal Code as Chapter 19.80, entitled "Controlled Residential Development." It directed the city council to ensure that the city's General Plan had a "Public Services and Facilities" element and that developers, after receiving discretionary approvals for any development project, participated in the timely construction and financing of facilities, and that city council should expend all funds collected solely for the purpose for which they were advanced. It also directed the city to "adopt such further ordinances, resolutions, policies, or procedures consistent with the purposes, intents and requirements of the ordinance," which resulted in adoption of the city's "Growth Management" ordinance (Chapter 19.09 of the Chula Vista Municipal Code) in 1991. The Initiative included the finding that intense residential development was adversely affecting the health, safety and welfare of the citizens of Chula Vista, and that its purpose was to better plan for and control the rate of residential growth in the city and to preserve quality of life. It also establishes that rezoning of property designated for residential development outside of Planned Community(PC) zoned areas could only be permitted to the next highest residential density category in any two-year period (for example, RE, R1, R2, R3). 3. "Growth Management Element" of Chula Vista's General Plan (Adopted by City Council April 17, 1990 and updated in 2005) The purpose of the"Growth Management Element" is "to describe the various components that, together, create the overall Growth Management Program that guides future development in the City." The General Plan's"Growth Management Element" also provides the policy framework for Chula Vista's Growth Management Program, whose overall goal is"To direct and coordinate growth and development in ways that maintain, and consistently endeavor to improve, the quality of life for current and future residents of Chula Vista." The General Plan establishes the vision of the type of community Chula Vista will become, and the "Growth Management Element" serves as a guide to assure that the vision is achieved,without sacrificing the quality of life enjoyed in the community; it contains the tools to allow the development patterns described in the "Land Use and Transportation Element" to take place over time. It considers capacities and generation rates described in the "Public Facilities and Services Element" and supporting documents to establish standards for new development, redevelopment and revitalization. It recognizes the importance of resources described in the "Environmental Element" and the 13 2015-02-17 Agenda Packet Page 385 contribution they make to the overall quality of life enjoyed by existing and future residents. Where applicable, cross-references are provided in the "Growth Management Element"to identify where interrelationships with other General Plan elements exist. 4. "Public Facilities and Services Element" of Chula Vista's General Plan (Adopted by City Council April 17, 1990 and updated in 2005) The purpose of the"Public Facilities and Services Element" is to establish the city's plan to provide and maintain infrastructure and public services for future growth, without diminishing services to existing development. Public facilities collectively refer to utilities, such as water, sewer, drainage, power and telecommunications services, and to infrastructure such as parks and recreation centers, schools, libraries, fire stations and police stations. Public services collectively refer to delivery of services such as law enforcement and fire protection and to other services that support and enrich the community, such as art and cultural facilities and programs, childcare opportunities, and health and human services. California state law does not require this element in the city's General Plan; however, it permits a general plan to include other elements and subjects that relate to the physical development of a city and subjects that relate to quality of life. Once an optional element has been adopted, it carries the same legal force and effect as a mandatory element. S. Growth Management Program (Adopted by city council April 23,1991) The Growth Management Program (Program) document, along with the "Growth Management Element" of the General Plan and the "Growth Management" ordinance, created a comprehensive system to manage future growth. The Program established a foundation for carrying out the development policies of the city by directing and coordinating future growth in order to guarantee the timely provision of bl' facilities and services,with primary focus being on the area east of Interstate 805. The Program reviewed the goals and objectives of the General Plan and the "Growth Management Element" and how the goals and objectives were met. It also: ■ O ed t union and responsibilities of the Growth Management Oversight Commission; ro ed overviews of the different community planning areas, describing the existing elopment process and the status of specific development projects for planning purposes; Discussed each of the eleven topics with adopted threshold standards; ■ Provided a description of the various components of the overall phasing policy, proposed specific development phasing policies, and presented a development phasing forecast; ■ Provided an overview of finance, discussing the existing finance approaches being used and listed the various methods available to finance public facility improvements; 14 2015-02-17 Agenda Packet Page 386 • Summarized the key components of implementation, describing threshold standards, facility master plans, project processing requirements, the development phasing policies/forecast, the GMOC, pacing of development, prioritizing projects, financial management and proposed finance policies, and the organizational structure necessary to operate the program; and • Provided a summary of the current status of the facilities in relation to threshold standard compliance, as reported in the second annual report by the GMOC. The information in the Growth Management Program was updated and incorporated into this Growth Management Program Implementation Manual, which replaces the Growth Management Program document. K I 6. "Growth Management Oversight Commission" Ordinance, Chapter 2.40 of the Chula Vista Municipal Code (Adopted by City Council May 7, 1991 and last updated in 2011) According to the ordinance, the city council's purpose and intent in establishing the Growth Management Oversight Commission was to "create an advisory body to provide an independent annual review of the effectiveness of the General Plan regarding development issues," using "threshold criteria to make determinations regarding the impact of development on the 'quality of life' in Chula Vista; publish findings; and make recommendations thereon." Chapter 2.40 also outlines functions and duties, membership and meeting schedule information for the GMOC. One of the duties of the GMOC is to prepare an annual report, as described in no. 9, below. This ordinance is supplemented by Chula Vista Municipal Code Chapter 2.25, described in no. 8, below. 7. "Growth Management Ordinance" Chapter 19.09 of the Chula Vista Municipal Code (Adopted by City Council May 28, 1991 and last updated in 2014) Consistent with the General Plan's"Growth Management Element" and in order to protect the public health, safety and welfare, the "Growth Management" ordinance accomplishes the following: A. Ensures that public facilities, infrastructure, and services continuously meet threshold standards and are provided in advance of or concurrently with the demands created by new development; Assures that individual development projects measure potential impacts upon public facilities, infrastructure and services and provide a plan for funding improvements needed to meet threshold standards; C. Limits or prevents additional development if public facilities, infrastructure, and services improvements meeting established threshold standards are not provided in a timely and logical fashion; D. Controls the timing and location of development by tying the pace of development to the provision of public facilities and improvements to conform to the goals and objectives of the General Plan, the threshold standards, and procedures set forth in the Growth Management Implementation Manual; and 15 2015-02-17 Agenda Packet Page 387 E. Promotes revitalization and redevelopment of older portions of the city, including the "Urban Core" area and the commercial corridors. The "Growth Management" ordinance sets forth the basis of the procedures involved with growth management, including both the monitoring of threshold standards and related regulatory actions and the imposition of growth controls. Its purpose is to ensure that, as new development occurs, public facilities, infrastructure and services will concurrently be provided to meet the demands generated by new development, and that service levels to existing residents will not be reduced. Therefore, it establishes requirements (in accordance with the General Plan) and specifies goals, objectives, threshold standards, and implementation measures for eleven topics, including: Air Quality, Drainage, Fiscal, Fire and Emergency Medical Services, Libraries, Parks and Recreation, Police, Schools,Sewer, Transportation and Water. 4 X 40 • Each goal describes a desired condition or "end state",while the objectives represent measureable steps toward achieving the goal. • Threshold standards are levels of service or maintenance standards, adherence to which will achieve the objectives and goal. • Implementation measures are those techniques that will be used to encourage or enforce maintenance of the threshold standards. These are the actions the city can take to preserve the current quality of life while development progresses. Three key implementation measures can be applied: Issuance of a "Statement of Concern";Adopt and fund tactics; and Development Moratorium. Statement of Concern A Statement of Concern is an implementation tool that may be used by the Growth Management Oversight Commission in its annual report, should the GMOC determine that a potential problem exists with respect to any of the threshold standard topics. ■ When issued for an externally controlled threshold standards (e.g. Water, Schools, Air Quality), the Statement of Concern will highlight what action the city and/or other agency can take in order to solve the specified issue and encourages further or additional inter- agency cooperation/coordination. There may also be a recommendation to issue correspondence or a resolution by the city council to the external agency if the situation so warrants, as determined by the GMOC and city council. ■ When issued to a city department regarding a current or forecasted failure of a threshold standard, the Statement of Concern may include elements dealing with city management, organization and budget priorities. ■ When issued in response to an overall or general quality of life consideration, irrespective to whether a particular threshold standard has been exceeded, or if it is a non-growth- related issue, the Statement of Concern can offer a finding, or make recommendations regarding city management, organization and budget priorities. 16 2015-02-17 Agenda Packet Page 388 Adopt and Fund Tactics Capital, operational, or program elements may be identified as needing to be established in order to correct a current or future threshold issue or deficiency. Development Moratorium The "Growth Management" ordinance provides that the city council may, by ordinance, at their discretion or on the basis of recommendations provided by the GMOC, make specific findings and impose a causal moratorium on the issuance of building permits in the city. This limitation, consistent with the provisions of the "Growth Management" ordinance, must be directly related to a cause associated with non-compliance of threshold standards and may be for the entire city or a designated sub-area. Any such growth limitation would endeavor to minimize unintended consequences and would be balanced and equitable. The moratorium would specify the corrective action(s)to address the problem and a time frame for resolving the failure. See section IV.13.10 "Building Permit Moratorium" for additional information Table 2, below, identifies the review mechanism and implementation measure associated with threshold compliance for each of the eleven topics. . , TABLE 2— SUMMARY OF THRESHOLD STANDARDS Application/Timing Implementation Measures Topic Project Level Annual City- "Statement of Plan of Action Public Hearing Conformance wide Concern"to Considering Review by Conformance Council Timing Moratorium to Staff Review by Benchmarks Achieve GMOC Finance Plan Conformance Fire/EMS X X X Police X X X Traffi X X X X Parks/ X X X X Recreation Drainage X X X X Libraries X X X Air Quality X X Fiscal X' X X 17 2015-02-17 Agenda Packet Page 389 Application/Timing Implementation Measures Schools X2 X X Sewer X X X Water X X X 'Fiscal Impact Analyses required for SPA Plans,or projects of 50 units or more,or equivalent for non-residential projects. 2Required for SPA Plans,or projects of 50 units or more. Not applicable for non-residential projects. The Growth Management Program implements the threshold standards through five procedural steps: A. Determining the regulatory requirements to be imposed upon discretionary development projects as defined by various state and local regulatory laws and rules and the growth management threshold standards; B. Applying these requirements when conducting discretionary review of individual project proposals and modifying project proposal and/or applying appropriate mitigation measures; C. Requiring a financing and phasing plan that assures the required public improvements will be adequately funded, pay for themselves, and be available when needed; D. Providing an annual review by a citizen commission (the GMOC) on the status of the city's quality of life, how the growth management program is functioning to meet its stated objectives, and to issue recommendations to the city council regarding findings related to meeting growth related threshold standards and the growth management program in general; and E. Providing the city council with the opportunity to take growth management actions needed to preserve, protect, and enhance the quality of life for current and future residents of the city. 8. "General Rules for Boards and Commissions" Ordinance, Chapter 2.25 of the Chula Vista (Adopted by City Council in 2008 and last updated in 2011) This ordinance supplements the "Growth Management Oversight Commission" ordinance described in no. 6, above. It goes into greater detail regarding membership, attendance requirements, ethics, compensation, operations, vacancies, etc. for all city commissions, including the GMOC. 9. Growth Management Oversight Commission's Annual Report Chapter 2.40 of the Chula Vista Municipal Code requires that the GMOC prepare an annual report for the city council regarding the current and potential future compliance status of the quality of life threshold standards. The report is intended to serve as a basis for recommending changing the capital investment program, making changes to city organization and management, engaging in interagency 18 2015-02-17 Agenda Packet Page 390 cooperation, and imposing development restrictions or other actions to assure that the threshold standards and related quality of life in the city are sustained. The report: • Assesses the accomplishments and deficiencies of the Growth Management Program over the last year; • Makes determinations as to whether each of the Growth Management Program's threshold standards have been met during the review cycle; • Comments on the likely future compliance status of each of the threshold standards, for up to five years; ■ Identifies issues and concerns related to growth management and quality of life; ■ Prepares recommendations to the city council related to threshold standard compliance, which may include: city management and organizational changes; capital investments; budgetary and fiscal matters; areas needing interagency cooperation; and need to restrict or reduce the rate of growth; and ■ Recommends changes or additions to growth management threshold standards and their respective implementing actions. One of the tools used to acquire information for the annual report is the Annual Residential Growth Forecast and responses from agencies, described below. 10.Annual Residential Growth Forecast and Agency Response The Annual Residential Growth Forecast(Forecast) is prepared in the first quarter of each fiscal year by city staff. It includes historical information, as well as the number of building permits projected to be issued each year over the next five years. The projections are based on disclosures from developers and builders regarding residential projects that have been or are undergoing the entitlement process, and could potentially be approved and permitted for construction within the next five years. These projects are under the city's control with respect to the standard entitlement process time frames. As such, the projections do not reflect market conditions outside the city's control and do not represent a goal or desired growth rate. They represent a "worst-case" or more liberal estimate to assess maximum possible effects to the city's threshold standards. Using more aggressive development figures in the forecast allows the city and service providers to evaluate the maximum potential effect on maintaining quality of life, and the ability to provide concurrent development of necessary public 41a and services. '1W Nk The Forecast is distributed to the city departments and outside agencies that monitor the Growth Management Program's threshold standards. Each department and agency is asked for the compliance status of the relevant threshold(s), and any future compliance issues relative to the level of projected growth. The responses of the city departments and other agencies are then assembled and presented to the Growth Management Oversight Commission as part of the Commission's annual review activities. 19 2015-02-17 Agenda Packet Page 391 11. Facility Master Plans Facility master plans are the means by which public facilities (such as libraries and fire stations) and services are planned for future adequacy at build-out. Adopted by city council, these plans are prepared by applicable city departments and periodically updated. They contain assumptions regarding existing and projected land uses and development projections, and identify specific facilities that will serve the build-out of future development, along with phasing and cost estimates. Development Impact Fees and other associated funding programs are established based on the needs identified in the master plans. The operating departments may also develop "strategic plans" that outline service demands and how these demands will be met. The city also regularly interfaces with the water districts, school districts and the Air Pollution Control District when they prepare their master plans and facility needs analyses. Future development proposals utilize facility master plans to determine the adequacy of specific facilities and to demonstrate compliance with the adopted threshold standards. A development proposal must be consistent with these various facility master plans,which currently include: ■ Libraries Strategic Vision Plan (April 8, 2014) and Strategic Facility Plan (April 8, 2014) ■ Fire and Emergency Medical Services Master Plan (2014) ■ Parks and Recreation Master Plan (Draft December 2010) ■ Circulation Element of the General Plan (Updated in 2013) ■ Bikeway Master Plan (February 1, 2011) ■ Pedestrian Master Plan (June 15, 2010) ■ Greenbelt Master Plan (September 16, 2003) ■ Wastewater Master Plan (July 2014) ■ Drainage Master Plan (2004) 12. Air Quality Improvement Plans Air Quality Improvement Plans (AQIPs) analyze air pollution impacts that would result from development of proposed projects, and define methods for mitigating development impacts and improving air quality. To enhance opportunities to improve air quality and energy conservation, Section 19.09.050(B) of the Chula Vista Municipal Code requires AQIPS for: 1) all major development projects of 50 dwelling units or greater; 2) commercial and industrial projects with 50 equivalent dwelling units (EDUs) of air quality impacts or greater; and 3) all Sectional Planning Area (SPA) Plans and Tentative Maps(TMs). The specifics for preparing AQIPs are attached in Appendix A. 13. Water Conservation Plans In order to reduce future water consumption for approved development proposals, Section 19.09.050(C)of the Chula Vista Municipal Code requires Water Conservation Plans (WCPs)for: 1) all major development projects of 50 dwelling units or greater; 2) commercial and industrial projects with 50 EDUs or greater; and 3) all SPA Plans and TMs. The plans must include detailed information, such 20 2015-02-17 Agenda Packet Page 392 as: a project description, identification of water service and supply, projected water use, and implementation measures. The specific requirements are attached in Appendix B. 14. Public Facility Finance Plans Public Facility Finance Plans (PFFPs) detail infrastructure and service requirements for particular projects and indicate how the improvements will be phased and funded to ensure continued compliance with threshold standards as development proceeds. They are the critical link between the threshold standards and development entitlements. When specific thresholds are projected to be reached or exceeded based upon the analysis of the proposed phased development of the project, the PUP prescribes specific timing benchmarks for delivery of new infrastructure and services necessary for continued compliance with the Growth Management Program and threshold standards. Per Section 19.09.080 of the Chula Vista Municipal Code, PFFPs are required for all SPA Plans and TMs, and may be prepared at various times in the development review process. Instructions and requirements for preparing PFFPs are outlined in Appendix C. 15. Fiscal Impact Analyses The purpose of fiscal impact analysis (FIA) is to estimate the impact of a development or a land use change on the expenditures and revenues to the city for serving the development.The analysis is generally based on the fiscal characteristics of the community land values, needed facilities and services, etc.The analysis enables the city to estimate the difference between the costs of providing services, such as police and fire services, park maintenance, etc., to a new development and the revenues (taxes and user fees, for example)that will be generated by the development. Because a FIA is primarily based on an analysis of city revenues and expenditures, key players conducting an assessment include the Director of Finance, the county tax assessor, and typically a consultant to gather information and to prepare the analysis. The city's Finance Department maintains the current FIA models that applicants must use. Two models exist. One is used for large-scale analysis of build-out conditions, such as for General Plan level analysis. The other is used for individual projects, such as SPA plans and Tentative Maps,which evaluate conditions throughout the project's phased implementation. At the discretion of the Development Services Director,a FIA may be required for development proposals of 50 dwelling units or more, and commercial or industrial projects with 50 equivalent dwelling units (EDUs) or greater. Also, FIAs may be required for individual projects within SPA plans if they propose amendments to the General Plan, General Development Plan or SPA. Projects must be fiscally positive, and the "Growth Management" ordinance (Chapter 19.09 of the Chula Vista Municipal Code) requires offsets for any negative years. 21 2015-02-17 Agenda Packet Page 393 16. Growth Management Program Implementation Manual Adopted by city council in 2014, the Growth Management Program Implementation Manual ("Manual") incorporates and replaces both the Threshold Standards and Growth Management Oversight Commission Policy and the Growth Management Program documents. It provides direction for implementing the city of Chula Vista's Growth Management Program, outlined in the "Growth Management Element" of the city's General Plan and in its "Growth Management" ordinance (Chapter 19.09 of the Chula Vista Municipal Code). The Manual sets out the procedures for how the Growth Management Program is administered, including how growth management policies integrate with other aspects of development regulation, finance, and municipal operations. , TABLE 3—GROWTH MANAGEMENT-RELATED REGULATORY PROGRAMS Growth Management-Related Function Status Regulatory Programs 1.Growth Management Monitors and guides the Growth Established pursuant to the 1987 Oversight Commission Management Program,prepares Threshold Standards and GMOC annual report on threshold standards Policy,and updated in Chapter compliance. 2.40 of the Chula Vista Municipal Nk 'N Code adopted by city council in 1991 and amended in 2011. 2.Development Impact Fees(DIF) Provide financing for development- Originally adopted in 1986 for and other Funding Mechanisms related infrastructure improvements. Eastlake and extended to the eastern area in 1998. The transportation development impact fee(TDIF)has expanded to western Chula Vista. Updated in accordance with updated facility master plans,and periodically for changes in conditions or construction costs. 3.Capital Improvement Program To fund new infrastructure and/or to Updated annually looking out one CIP) increase the useful life or value of and five years. the city's physical assets or existing infrastructure. The CIP funds infrastructure not otherwise required to be built by developers. 4.Community Facilities Districts A special taxing authority that may The city has numerous CFDs, (CFDs),Assessment Districts(ADs) be formed to finance certain particularly in eastern Chula Vista, and Bonds designated public services and capital covering facilities such as schools, facilities by levying special taxes drainage,and open space which are continuing liens levied maintenance. Levies are against real property within the periodically reviewed and service area. updated. 5.Intergovernmental An agreement between agencies to The City has agreements with the 22 2015-02-17 Agenda Packet Page 394 Growth Management-Related Function Status Regulatory Programs Agreements upgrade services,consolidate city of San Diego for dispatching resources and save money. fire services,the San Diego Metropolitan Wastewater District for sewage treatment capacity, and San Diego County for shared sewer lines in portions of the city of Chula Vista. 6.Development Review Process Technical studies,PFFPs and In the PC zone,the threshold conditions of approval are used to standards are integrated into the evaluate and ensure projects comply development review process in a with the threshold standards and 3-tiered manner: General related requirements. Development Plan(GDP),SPA& PFFP/FIA and Tentative Map. 7.Environmental Analysis Compliance with threshold standards Conducted on all discretionary is analyzed through environmental proposals deemed to be"projects" review of development projects under CEQA;some result in consistent with state law(California preparation of Environmental Environmental Quality Act or Impact Reports(EIRs). "CEQA"). 8.Development Agreement An optional contract between the The city has development agree- city and a developer to specify ments for property associated with standards and conditions governing Otay Ranch,including Millenia. property. 9.Traffic Monitoring Program(TMP) The collection of traffic monitoring The city routinely monitors traffic data (traffic volume and travel times) at specific intersections and along carried out under a variety of select roadway corridors identified programs and used to determine LIX level-of-service(LOS)performance on the TMP's Arterial Segments pursuant to the Traffic threshold. Map. 10.Building Permit Mora i City council may,by ordinance, Used only on a case-by-case basis, impose a limit on building permits if if determined necessary by city specific findings are made. Limits are council in a public hearing. to avoid exacerbation of a problem until threshold compliance issue is remedied. B. Growth Management-Related Regulatory Programs 1. Growth Management Oversight Commission As outlined in Chapter 2.40 of the Chula Vista Municipal Code, the Growth Management Oversight Commission (GMOC) consists of nine citizens appointed by the city council and represent four geographic areas in the city(southwest, southeast, northwest, and northeast), four interest areas (education, business, development, and environmental), and a representative from the planning 23 2015-02-17 Agenda Packet Page 395 commission. The purpose of the GMOC is "to provide an independent annual review of the effectiveness of the General Plan in regard to development and growth-oriented issues; to make determinations in regard to the impact of development on the quality of life in Chula Vista, using the threshold standard criteria; and to publish findings and make recommendation on the same." In addition, the GMOC looks at facility master plans, development activity, financing plans for constructing new facilities, development phasing, and other growth management issues. The city provides secretarial support and a liaison who serves as lead staff support and contact for the GMOC, acts as facilitator for functioning the commission, and writes reports, including the annual report that evaluates compliance of threshold standards and makes determinations regarding the impact of development on the quality of life within the city. The GMOC's review is structured around three timeframes: • A Fiscal Year Cycle (July 1—June 30) to accommodate city council review of GMOC recommendations that may have budget implications; • The period after June 30 until completion of the annual report to address pertinent issues identified during this timeframe, and to assure that the GMOC can and does respond to current events; and • A five-year forecast, beginning in the first quarter of the fiscal year and ending in December five years later to assess potential threshold compliance concerns. 2. Development Impact Fees and Other Funding Mechanisms for Public Facilities Development Impact Fees (DIFs) are one-time charges applied to new developments. Their purpose is to raise revenue for the construction or expansion of capital facilities located either within or outside the boundaries of the new development, and to benefit the contributing development. Impact fees are assessed and dedicated principally for the provision of additional sewer systems, roads, libraries, fire stations and parks and recreation facilities made necessary by the presence of new residents in the area. The funds collected cannot be used for operation, maintenance, repair, alteration or replacement of capital facilities. Below is a list of established DIF funds as of Fiscal Year 2014-15: ■ astern Transportation TDIF ■ Western Transportation TDIF Traffic Signal ■ Telegraph Canyon Drainage ■ Telegraph Canyon Gravity Sewer ■ Poggi Canyon Sewer Basin ■ Salt Creek Sewer Basin ■ Pedestrian Bridges(Otay Ranch Villages 1, 2, 5, 6, 11 and Millenia) ■ Public Facilities (Administration, Civic Center Expansion, Police Facility, Corp. Yard Relocation, Libraries, Fire Suppression Systems, Recreation Facilities) 24 2015-02-17 Agenda Packet Page 396 Chula Vista originally adopted DIFs in 1986 for the Eastlake master planned community and subsequently adopted DIFs for all of eastern Chula Vista in 1998. Typically, the DIFs are updated in accordance with updated Facility Master Plans, and on a periodic basis to reflect changes in construction costs, etc. The terms for collection of Development Impact Fees are outlined in various authorizing ordinances. Fees are generally to be paid upon the issuance of building permits for each development project within the city of Chula Vista, except that, at the discretion of the City Manager, prepayment arrangements may be made. Also, whenever a developer is required to construct or finance a facility that services more than just the demands of their project (such as a portion of a major roadway), procedures are followed to receive DIF credit or reimbursement. There are a number of financing options available for developer obligated capit prov ents, including the following: JM4�• Cash/Pay-as-You-Go Financing: In this method the city charges the development community a series of fees that provide the source of income to pay for capital improvement projects. Once enough cash has been collected the city constructs the next capital project in order of its priorities. • Reimbursement Agreements: The city may, under certain circumstances, be asked by a developer to reschedule a project to an earlier date and to construct the facility before funds have been collected under the pay as you go or fee system. When this occurs, the city adopts a policy of having the interested developer construct the project based on a reimbursement agreement. The city pays the developer back for the portion of the project that was to be funded by city resources when funds are available. The use of this method of project financing does not eliminate the developer's obligations to pay city fees associated with their specific development project. • Credit for City Fees: When the city determines that the public interest is served by a developer constructing certain public facilities earlier than possible under a pay as you go program the city can consider giving the developer credit for fees that would otherwise be paid at building permit issuance. These credits would reduce the amount of fees payable in future years from a certain development. The use of fee credits is carefully examined to avoid reducing the amount of available funds necessary to build other capital improvements. Options exist when considering fee credits in the following areas: Full fee credit immediately: Under this alternative, the developer who builds a public improvement is eligible to deduct 100 percent of the cost of this improvement from the required city fees. Once the fee credit is exhausted the developer begins paying fees as normally assessed by the city. Under this option the developer gets immediate credit for the total cost of the project. 25 2015-02-17 Agenda Packet Page 397 • Full fee credit overtime: Under this alternative the developer who builds a public improvement receives credit for the cost of the public improvement. However, the use of the credit is spread over a number of years or payments. This would allow the city to continue receiving some fees while at the same time crediting the developer for partial fee payments • Debt Financing: The city has a maximum special tax of 1%of the sales price of new properties, as of the date of close of escrow. The statewide ad valorem property tax rate is also 1%. Some of the other debt financing options available are described below. 3. Capital Improvement Program The city's Capital Improvement Program is the annual council-approved compilation of all of the capital improvement projects designed to foresee and address the city's future capital needs. A Capital Improvement Project (CIP) is a public infrastructure project that increases the useful life of the city's physical assets or infrastructure and/or adds to their value. Specific funding is granted by city council. Implementation of CIPs may have a direct effect on threshold compliance. For example, CIPs to lengthen turn lanes or to add extra travel lanes may be necessary to improve traffic flow so that it will comply with the level of service that meets the traffic threshold standard. Recommendations in GMOC annual reports can, and have in the past, resulted in proposed CIPs to remedy issues such as these. 7 4. Community Facilities Districts, Assessment Districts and Bonds ff Various special districts wit m the city collect fees,which are used for capital improvements defined within their capital improvement programs. A Community Facilities District(CFD), such as a Mello- Roos district, is a special taxing authority that may be formed to finance certain designated public services and capital facilities by levying special taxes which are continuing liens levied against the real property within the service area. ■ Mello Roos Community Facilities Act of 1982: The Mello Roos Community Facilities District Act provides governmental entities with the ability to finance infrastructure through the creation of a special tax as allowed by section 4 of Article XIIIa of the State Constitution. This special tax may be created with the approval of two-thirds of the property owners based on the amount of property owned or registered voters based on one vote per person if more than twelve registered voters reside within the district. A Mello Roos district may finance a wide variety of facilities, including schools. Libraries, parks, streets and civic buildings. The act generally provides that a governmental entity, a city a school or a joint powers authority may use a Mello Roos district to finance any facility that the legislative body for that government is empowered to construct. 26 2015-02-17 Agenda Packet Page 398 Capital facilities that may be funded by a CFD include: police and fire protection stations, open space improvements, cultural facilities, and elementary and secondary schools. CFDs also fund maintenance for a range of facilities and open space districts. An Assessment District may be formed by the city when it embarks on a public works project — such as a new road or a sewer system upgrade —to raise the funds needed to cover the expense. It is a specially designated area encompassing properties that stand to benefit from a particular improvement. ■ Assessment Districts: Assessment districts generally fall into the Municipal Improvement Act of 1913 Division 12 of the Streets and Highways Code of the State of California and the Improvement Act of 1915 is Division 10 of the Streets and Highways Code. The city may use assessment districts to assist the developer in the construction of various public improvements that may be financed through either the use of a 1913 or 1915 assessment district. There must be a significant public benefit from this improvement to use these districts. Property owners in Assessment Districts collectively pay in proportion to their share of benefits received. Usually,the type or amount of use on the property and the size of the lot will determine the amount due. The resulting assessment will appear as part of the property owner's tax bill. These special taxes occur over the course of several years, because homeowners are actually repaying bonds sold by the city to finance the project. Since the life of a bond issue is an average of 15 to 20 years, special assessments do not disappear quickly. Due to Proposition 218, however,California State law now requires that property owners who would benefit from a public improvement — and thus pay for it— approve the creation of the Assessment District. State law also allows for the formation of special benefit districts. • Special Benefit Dist icts: State law allows for the formation of a variety of special benefit districts. �fhese disticts may be used to fund the construction of parks, libraries, police or fire faities and street lighting systems,to name just a few. These districts are formed by a vote of the property owners who are assessed for the cost of improvements. The developer and or land owner bears the burden of debt service payments. City icipation in a district of this type must be in proportion to the construction for which th 'ty is responsible. • ew evenue Bonds: The city may elect to issue revenue bonds to finance improvements elated to utility functions or other city services that generate a fee for service. If the public improvements are being installed ahead of the expected schedule to accommodate the developer,the developer must offset many of the costs of issuing the revenue bonds. • Certificates of Participation: Certain public facilities such as buildings can be financed through certificates of participation. This is in effect a lease agreement between the city and another agency. A developer wishing to move projects forward might consider constructing facilities such as a library, park, or fire station using this finance tool. 27 2015-02-17 Agenda Packet Page 399 ■ General Obligation Bonds: The city can issue general obligation bonds to fund the construction of public improvements. As required by state law, this can only be accomplished with the approval of two-thirds of the voters in an election. General obligation bonds can probably best be used in the older portions of the city. They provide facility improvements in areas where there is no new development to provide facilities. S. Intergovernmental Agreements I& Most intergovernmental agreements are made to upgrade services, consolidate resources and save money. They can be made between or among a broad range of governmental or quasi-governmental entities, such as a city and a county or a city and a school district. A typical intergovernmental agreement might involve a contract between two small cities to share police, fire and paramedic services. Intergovernmental agreements can improve services, save money through economies of scale, and lead to a culture of inter-community cooperation in many areas 7 The city currently has an intergovernmental agreement with the city of San Diego for dispatching fire services, the San Diego Metropolitan Wastewater District for sewer capacity, and San Diego County for shared sewer lines in portions of the city of Chula Vista. 6. Development Review Process Integration of the Growth Management Program into the development review process varies from projects in the Planned Community(PC) zone and projects not in the PC zone. The approach for each is explained below. Development in PC Zon The Growth Management Program's threshold standards are integrated into the city's development review process of large-scale projects, or those in the Planned Community(PC) zone, in a three-tiered manner, as shown on Table 4. • Tier 1 involves preparation of a General Development Plan, which establishes the basic land use and development policies. Initial environmental review is completed, which provides a framework for subsequent environmental review and actions. ■ Tier 2 involves preparation of a detailed Sectional Planning Area Plan and a corresponding Public Facilities Finance Plan, consistent with the requirements of the "Growth Management" ordinance. The SPA and the PUP are the basis of land development standards and infrastructure requirements, along with any related Development Agreement entitlements and responsibilities. • Tier 3 involves creating the Tentative Map and meeting key requirements, such as establishment of financing mechanisms and assurances that threshold standards can be met as development is actually occurring. 28 2015-02-17 Agenda Packet Page 400 TABLE 4—THREE-TIERED DEVELOPMENT REVIEW PROCESS Tier 1 Tier 2 Tier 3 General Development Sectional Planning Tentative Map Plan and Area Plan and Public Environmental Analysis Facilities Finance Plan Threshold Tests feasibility of project Demonstrates Project must guarantee Standards and at build-out per consistency of each conformance to CEQA Review threshold standards and phase with threshold threshold standard prior analyzes environmental standards to building impacts Public Facilities Allocates project share of Locates and describes Construction of public Requirements public facilities at build- public facilities needed facilities guaranteed out for each phase Financing of Identifies financing Identifies cost,financial Specific financing Facilities options responsibility,and mechanisms established proposed financing method for each public facility This approach has served the city well in managing expansion in eastern Chula Vista. Development Outside of PC Zone A different approach to regulation has been established to encourage and manage desirable development and redevelopment in western Chula Vista,given the unique development challenges faced in this area. This regulatory approach relies upon the preparation of city-sponsored specific plans and corresponding PFFPs. The western Chula Vista regulatory framework accounts for the smaller size of urban infill projects and the financial hurdles often facing infill and redevelopment projects (e.g., parking, hazardous materials remediation, etc.) and the related need for public investments. 7. Environmental Analysis California Environmental Quality Act (CEQA) review is conducted on all discretionary proposals deemed to be "projects" under CEQA; some result in preparation of Environmental Impact Reports (EIRs) or Mitigated Negative Declarations (MNDs). The process of analyzing a development project's impact on public services, consistent with CEQA, involves determining compliance with "thresholds of significance". Such thresholds may be actual GMP thresholds or a combination of GMP thresholds and other requirements from the General Plan, MSCP, etc. 29 2015-02-17 Agenda Packet Page 401 8. Development Agreement A development agreement is a regulatory tool that can be used to provide, enhance or advance a Capital Improvement Project. It is an elective contract between the city and a developer and specifies the standards and conditions that will govern the development of the property and provide assurance to the developer that they may proceed to develop the project subject to the rules and regulations in effect at the time of approval—generally, the development will not be subject to subsequent changes in regulations. For instance, a current agreement between the city and a developer stipulates that"If city amends its 'Growth Management' ordinance, the amended 'Growth Management' ordinance shall apply to the project upon master developer's written acceptance by a clarification pursuant to..., which acceptance shall not constitute an amendment to this agreement. This provision shall not affect any mitigation measures required of master developer under the environmental document certified for the project." The agreement should also benefit the city and may include conditions (mitigation measures)that must be met to assure that a project at a specific location does not have unacceptable impacts on neighboring properties or community infrastructure.The agreement may clarify how the project will be phased, the required timing of public improvements, the developer's contribution toward funding system-wide community improvements, and other conditions.The agreement can also facilitate enforcement of requirements, since it is a contract that details the obligations of the developer and the city. 9. Traffic Monitoring Program The city's engineering department has various methods of monitoring level-of-service (LOS) (physically driving or remote sensing) at key intersections and along corridors throughout the city on an annual basis. An "Arterial Segments" map defines the location and length of roadways to be measured for compliance, and each year findings are reported on arterial segment maps that show the LOS (A-F)for three time periods of the day: AM Peak, Mid-Day Peak and PM Peak. The Growth Management Oversight Commission reviews this information in determining whether or not traffic in the city is in compliance with the traffic threshold standard. 10. Building Permit Moratorium As provided in the city's "Growth Management" ordinance (section 19.09.070 of the Chula Vista Municipal Code), the city council has the ability to adopt an ordinance imposing a limit on building permits for construction of residential and/or non-residential development after making one or more of the following findings in regard to health, safety and welfare: ■ That continued development will make it unlikely for the intent of the Growth Management Program to be achieved, as expressed by the"Growth Management" element of the General Plan and this chapter. 30 2015-02-17 Agenda Packet Page 402 • That continued development will cause deterioration of the city's quality of life,and compromise the health, safety and welfare in the city of Chula Vista. • That continued development will strain the city's fiscal resources and ability to deliver high quality services to all of its residents. Limits are imposed to avoid exacerbation of a problem until threshold compliance issue is remedied. If the city council makes the necessary required findings to impose a limit on building permits, then it shall adopt an ordinance that specifies: 1�^ ■ Area where the moratorium applies; ■ Duration of the moratorium (when it begins and ends); ■ Any exemptions or exceptions or conditions. These shall be consistent with the overall objectives of the city action and broader land use policy. Exemptions could include "affordable" housing units (units sold or rented at below market rates to meet the city's Housing Element requirements). Exceptions might include units that have been allocated as part of a separate agreement (e.g., a development agreement); ■ Any conditions that would allow the moratorium to be lifted prematurely; and ■ How the building permits shall be allocated. V. Administering the Growth Management Program Administering Chula Vista's Growth Management Program is led by the city's Development Services Department as a part of the overall development review process; however, administration is a joint effort by other city departments, the Growth Management Oversight Commission, the planning commission and the city council. A. City Staff Responsibilitie kA As illustrated in Figure 2, city staff activities include monitoring threshold standards, forecasting growth- related impacts, reviewing and conditioning development projects, reviewing compliance with PFFPs, tracking and monitoring development, and preparing the GMOC's annual report. The city attorney provides oversight and assistance, and many departments contribute their technical expertise. 1. Tracking Development City staff tracks development to monitor growth, track timely implementation of Public Facility Financing Plans (PFFPS) phasing requirements and other SPA Plan or Tentative Map conditions relative to maintaining compliance with threshold standards. Tables are updated monthly to show the number of single-family and multi-family units at each stage of project implementation: SPA Plan,Tentative Map, Final Map, Building Permit Issued and Occupancy. 31 2015-02-17 Agenda Packet Page 403 2. Threshold Compliance Reports Staff also tracks and prepares threshold compliance reports for Police and Fire response times, and Traffic's level of service. Threshold compliance reports are also submitted by staff on an annual basis for Air Quality, Drainage, Fiscal, Libraries, Parks and Recreation and Sewer. 3. GMOC Support The Development Services Department currently provides administrative, technical and clerical staff support for the GMOC. City staff tasks include, but are not limited to, the following: • In the first quarter of each fiscal year, preparing a residential growth report containing a 5-year development forecast, running from the first quarter of the fiscal year through December five years later. • Scheduling an annual organizational meeting of the GMOC for the purpose of electing a chair and vice-chair, and setting the schedule for the current review cycle. • Providing administrative and clerical support to the GMOC for its meetings, and in the preparation of its annual report. ■ Advising the GMOC on technical and policy matters. • Requesting information from city departments and outside agencies, as may be necessary, for the GMOC to adequately perform its function. • Providing responses to GMOC requests for information related to their evaluation of threshold standard compliance and other related requests, as reasonable, and in a timely manner. This may include attending one or more GMOC meetings, in addition to providing written information. • Assisting the GMOC as it prepares its annual report, providing technical assistance and production. • Scheduling a publicly noticed joint workshop with the GMOC, planning commission and city council to present the annual report to the decision-making bodies for their consideration of findings and recommendations included in the report and in a "Recommendation/ Implementing Actions Summary." Any actions from the planning commission and city council are accomplished by resolution. 2L 'IN • After the planning commission and city council have acted on the GMOC's annual report, ensuring that any policy changes directed by the city council are returned to the city council in the form of a draft resolution initiating the recommended policy changes. The resolution and a related staff report are intended to be a ready and thorough reference for the public, city staff, developers and decision-makers documenting the changes needed are implemented. 32 2015-02-17 Agenda Packet Page 404 FIGURE 2— IMPLEMENTING ROLES AND RESPONSIBILITIES City Staff Activities Monitoring threshold standards Monitor Review and growth and condition PFFPs development L Projects Planning Commission & City Council Review and Actions 14 01 ago GMOC Review and Recommendations B. Growth Management Oversight Commission Responsibilities The functions and duties of the Growth Management Oversight Commission are outlined in Chapter 2.40 of the Chula Vista Municipal Code and discussed in sections IV.A.3. "Growth Management Oversight Commission Annual Report" and IV.13.9 "Growth Management Oversight Commission." C. Planning Commission and City Council Responsibilities The planning commission shall annually appoint a member from the planning commission to serve as a GMOC commissioner. The GMOC's Annual Report shall be submitted to both the planning commission and the city council to discuss findings and recommendations, and to request, by resolution, acceptance of the report at a joint workshop/public hearing, to be held before adoption of the budget each year. The planning commission may comment on the findings and recommendations and shall, by resolution, make a recommendation to the city council, who shall take action. Both the planning commission and the city commission are also responsible for reviewing documents and programs associated with development including, but not limited to: SPA Plans, PFFPs, EIRs, Financial Impact Analyses and Development Impact Fees. 33 2015-02-17 Agenda Packet Page 405 I ��/� D e v e l o p m e n t S e r v i c e s D e p a r t m e n t /Tr Planning Division I Development Processing CITY CHULA V ISTA AIR QUALITY IMPROVEMENT PLAN (AQIP) GUIDELINES V I. Introduction Community and site design features and environmentally conscious building practices can have a substantial effect on air quality emissions and energy consumption. In recognition of this,the City of Chula Vista has been progressive in its approach to advancing the practices of energy conservation and reduction of greenhouse gas emissions.This is evident through the City's Growth Management Ordinance (CVMC 19.09),Carbon Dioxide (CO2) Reduction Plan,Climate Change Working Group (CCWG) Implementation Measures,and Green Building and Increased Energy Efficiency Ordinances (CVMC 15.12,and 15.26.030, respectively).These programs promote energy conservation and reduction of greenhouse gas emissions by requiring applicants to implement the best available community site design practices such as providing alternative modes of transportation,transit-friendly,walkable communities,and sustainable building design. The City's Growth Management Ordinance, requires an Air Quality Improvement Plan (AQIP) to be submitted with all Sectional Planning Area (SPA) Plans or major development projects consisting of 50 dwelling units or greater(or non-residential or mixed use projects with equivalent dwelling units (EDUs)to a residential project of 50 or more dwelling units).As required by Growth Management Ordinance,the AQIP shall provide an analysis of air pollution impacts which would result from the project,and will be required to demonstrate the best available design to reduce vehicle trips, maintain or improve traffic flow, reduce vehicle miles traveled, including implementation of appropriate traffic control measures,and other means of reducing emissions (direct or indirect) from the project. To further enhance opportunities to improve air quality and energy conservation,applicable action measures contained in the City's Carbon Dioxide (CO2) Reduction Plan must also be addressed in the AQIP.The City's CO2 Reduction Plan was adopted in late 2000 and establishes a strategy for the City to reduce energy consumption, promote alternative transportation and design transit-friendly, walkable communities.As part of the AQIP,applicants will be required to demonstrate how their project was designed to help implement the action measures contained in this plan. In addition,although not required for AQIPs,at the time a building permit application is submitted,the developer/applicant will be required to comply with the provisions of the City's Green Building and Increased Energy Efficiency Standards,CVMC 15.12 and 15.26.030 respectively.These standards focus on implementing environmentally friendly construction practices and materials,and improving building energy conservation above current California State Title 24 Energy Code requirements.The environmentally conscious planning efforts developed in conjunction with the project's AQIP will facilitate compliance with CVMC 15.12 and 15.26.030 and expedite the building permit process. Through the AQIP,applicants must demonstrate how their project has been designed consistent with each of these programs and thus represents the best available design in terms of improving energy efficiency and reducing greenhouse gas emissions.These guidelines have been developed to provide direction in the preparation of AQIPs. II. City Requirements for AQIPs A. Sectional Planning Area Plans,Tentative Maps,and Other Major Projects In accordance with the City's Growth Management Ordinance (19.09),the developer/applicant shall prepare and submit an AQIP with applications for all SPA Plans,Tentative Maps,or for any major development projects that meet the following criteria: • Residential projects of 50 dwelling units or greater. • Commercial projects of 12 or more acres (or equivalent square footage). • Industrial projects of 24 or more acres (or equivalent square footage). • Mixed Use projects with a cumulative threshold equal to that of 50 residential dwelling units or greater (refer to Attachment A, Exhibit 1 for examples of AQIP equivalent dwelling unit determinations). As described further below,the AQIP must include a qualitative and quantitative analysis of the proposed project to demonstrate how the project has met the City's thresholds for reducing air quality impacts and improving energy conservation. Key components of the AQIP will address: • Air pollution impacts from project. • Project efficiency through quantitative project evaluation. • Community and site design features. • Eligibility requirements to receive energy efficiency credit toward CVMC 15.26.030. I I AQ8P Re 11 2015-02-17 AgendaPacka76 Fourth Avenue Chula Vista California I 91910 I (619) 691.5101 I ��/� D e v e l o p m e n t S e r v i c e s D e p a r t m e n t /Tr Planning Division I Development Processing CITY CHULA V ISTA AIR QUALITY IMPROVEMENT PLAN (AQIP) GUIDELINES V Additional details regarding AQIP requirements and format are provided in Attachment A: Required Content and Format for Air Quality Improvement Plans. III.AQIP Format and Structure As noted above,the key components of the AQIP must address:air pollution impacts of the proposed project, quantitative project evaluation through modeling, community and site design features,and eligibility requirements receive energy efficiency credit. Each of these key topic areas is further discussed below. A. Summary of Air Pollution Impacts The Applicant shall summarize the effect of the project's mobile and stationary emission sources on local and regional air quality. It is expected that this section will focus on highlighting the findings contained in the air quality impact analysis prepared as part of the project's respective Environmental Impact Report (EIR). This section of the AQIP must address the following: " Federal,State,and Local rules and regulations related to assessing air quality impacts. " Project's mobile and stationary emission sources and related criteria pollutants(including those associated with short-term construction and long-term implementation). " Effect of project emissions on local and regional air quality. "A summary of CEQA Mitigation Measures that will be implemented to reduce the project's effect on air quality. B.Quantitative Project Design Evaluation The Applicant(s) shall perform a quantitative analysis through one of two computer-modeling options in order to demonstrate that the project has met the City's required thresholds for community design considerations such as land use mix, street system connectivity,and pedestrian network.The primary means to accomplish this is through an INDEX PlanBuilder(INDEX) model developed specifically for the City (Option 1).As an alternative to the INDEX program, Developers/Applicants have the option to use other modeling tools similar to INDEX provided that the results can be translated to clearly demonstrate compliance with the City's established thresholds (Option 2).A summary of each of the two options is provided below. (1)Option 1:INDEX PlanBuilder INDEX is an interactive GIS-based planning tool designed to assist in community planning by evaluating proposed community/site designs against a set of performance standards.Applicants choosing this option shall have their project evaluated against a set of'Key Indicators'that measure the performance characteristics of the project in relation to required minimum baseline scores.An INDEX program has been developed specifically to model major projects in Chula Vista through a required set of Key Indicators focusing on air quality and energy efficiency. The Key Indicators that will be measured through the INDEX model are presented in Table 1. Definitions for each of the Key Indicators and the minimum scores for each are provided in Attachment A, Exhibit 2. TABLE 1: List of INDEX Key Indicators INDEX Key Indicators _ Land-Use Use Mix ■ Intersection Density • Land-Use Use Balance ■ Pedestrian Network Coverage • Neighborhood Completeness ■ Residential Multi-Modal Access • School Proximity to Housing ■ Residential Building Energy Use •Transit Proximity to Housing ■ Non-Residential Building Energy Use • Park Proximity to Housing ■ Residential Building CO2 Emissions • Internal Street Connectivity ■ Non-Residential Building CO2 Emissions ■Transit Proximity to Employment ■ Daily Auto Driving (Density,Diversity,and Design) 1.VMT:Vehicle Miles Traveled AQ8P Re 11 2015-02-17 AgendaPacka76 Fourth Avenue Chula Vista California I 91910 I (619) 691.5101 I ��/� D e v e l o p m e n t S e r v i c e s D e p a r t m e n t /Tr Planning Division I Development Processing CITY CHULA V ISTA AIR QUALITY IMPROVEMENT PLAN (AQIP) GUIDELINES V The Applicant is responsible for the costs of retaining the consultant to perform the INDEX modeling services and may choose to either 1) enter into a three-party agreement with the City and the consultant providing the INDEX modeling services or,2) contract directly with the consultant providing the INDEX modeling services.Additional details describing the timing of the modeling efforts,and required format of project information the Applicant will need to provide in order to run the INDEX model is provided in Attachment B. (2)Option 2:Alternative Modeling Programs As an alternative to the INDEX model,applicants may choose an alternative compliance program modeling software such as LEED ND,Community Viz,or PLACHS,among possible others, provided that the results address the topics on the Key Indicators List(Table 1),and can be translated to clearly demonstrate equivalent compliance with the minimum threshold scores established through INDEX for each of the required Key Indicators. AQIPs prepared through alternative modeling programs must summarize the modeling results in a format comparable to that generated through INDEX. Refer to Attachment A,Section 11.7.5 for additional requirements pertaining modeling Option 2. Applicants choosing to model their project through a program other than INDEX are responsible for the costs of retaining a consultant to perform the necessary modeling services. Applicants may choose to either: 1) enter into a three-party agreement with the City and the consultant providing the alternative modeling services or,2) contract directly with the consultant providing the quantitative modeling services. If the applicant chooses to contract directly with the consultant, the applicant will be required to submit a deposit to the City for third party peer review of the modeling outputs to ensure consistency with the thresholds established through INDEX. (3)Compliance with City Required Modeling Thresholds In order to deem the proposed project consistent with the City's adopted strategies for improving air quality and energy conservation,the project must demonstrate at or beyond the City's performance threshold scores for each key indicator as shown in Table A-1 of Attachment A. If the initial modeling results indicate that the project does not satisfy the City's minimum performance thresholds,the Developer/Applicant shall refine/redesign the project accordingly,and have it reevaluated through the applicable model until consistency with the established performance thresholds has been achieved. In the event that a project is unable to reasonably comply with all key indicator thresholds due to unique circumstances involving project land use make up,design,and/or pre-existing environmental/land-use conditions,the Developer/Applicant may request,in writing to the City's Development Services Director(or their designee),a waiver from those particular key indicators.The written request must substantiate the reasons why the indicator thresholds cannot reasonably be met.The discretion to waive performance requirements for certain key indicators from project evaluation rests exclusively with the City's Development Services Director(or their designee). C. Community Design/Site Planning Features (1) Use of Smart Growth Principles The AQIP shall provide a qualitative discussion describing the effect community design can have on air quality in terms of site planning,transportation,and energy efficiency.The focus of this discussion is to elaborate the on the specific project features that were used in conjunction with the quantitative modeling requirements.The discussion should be project specific, referencing as appropriate,acreages, unit counts,distances,etc.A list of typical design features with general definitions will not be acceptable.Applicants that incorporate smart growth design features targeted at reducing vehicle miles traveled (VMT) are more likely to receive favorable scores during the initial quantitative modeling,thus reducing the potential for additional modeling efforts. Some examples of commonly recognized principles of smart growth projects are provided in Attachment A, Exhibit 3. (2) Project Consistency with CO2 Reduction Plan The AQIP shall provide a comparative evaluation of the project's community/site design and other features and how these serve to implement the applicable action measures contained in the City's Carbon Dioxide(CO2) Reduction Plan. Details regarding report content and format as well as a listing of the action measure to be evaluated are provided in Attachment A,Section 11.7.7. AQIP Rev 08.1 1 2015-02-17 AgendaPacke176 Fourth Avenue I Chula Vista I California 1 91910 1 (619) 691.5101 I ��/� D e v e l o p m e n t S e r v i c e s D e p a r t m e n t /Tr Planning Division I Development Processing CITY CHULA V ISTA AIR QUALITY IMPROVEMENT PLAN (AQIP) GUIDELINES V (3) Compliance Monitoring The applicant shall provide a checklist to track and monitor implementation of all contributing aspects(mitigation measures,site/project design features,credit options) of the approved AIQP following the entitlement process. In order to track compliance with the project features contained in the AQIP,the checklist shall indicate the method and timing of verification,along with the responsible party to ensure the project features described in the AQIP are sufficiently implemented. A sample checklist format is provided in Attachment A,Section 11.7.9. IV.Credit Option for Building Energy Efficiency Ordinance Requirements The following discussion is intended for informational purposes only. Detailed provisions related to the calculation and application of credits are currently under development and subject to subsequent review and approval of City Council. As noted in the introduction, under the City's Energy Efficiency Ordinance (CVMC 15.26.030),all new buildings must exceed minimum energy efficiency requirements under the State's current 2008 Title 24 Energy Code.This includes future buildings in SPA Plan areas with AQIPs prepared pursuant to these AQIP Guidelines. In recognition that community design and other planning considerations made at the SPA level contribute to overall energy savings in new development, new SPA Plan areas (those approved subsequent to the adoption of Energy Efficiency Ordinance) may be granted a partial credit toward meeting the more stringent building energy efficiency requirements under CVMC 15.26.030,if the SPA Plan conforms to a set of progressive community/site design threshold standards evaluated as part of the AQIP. If the results of the additional quantitative modeling do not meet the progressive set of qualifying thresholds,the applicant must modify the project design in order to meet the qualifying scores, or the credit cannot be granted.Applicants that are successful in demonstrating that their SPA Plan or project has met the qualifying energy savings thresholds will be eligible to receive the energy savings credit at the time of building permit. Following the successful completion of the progressive modeling,the City's Development Services Director(or their designee) shall issue a written communication to the applicant confirming that the project is eligible to receive an energy savings credit towards compliance with CVMC 15.26.030.The applicant shall include this letter as part of the building permit application at which time the credit can be applied as appropriate. AQIP Rev 08.11 2015-02-17 AgendaPacke`ir76 Fourth Avenue I Chula Vista I California 1 91910 1 (619) 691.5101 I ��/� D e v e l o p m e n t S e r v i c e s D e p a r t m e n t /Tr Planning Division I Development Processing CITY CHULA V ISTA AIR QUALITY IMPROVEMENT PLAN (AQIP) GUIDELINES V ATTACHMENT A Required Content and Format for Air Quality Improvement Plans The following outline has been developed to direct the content and format of Air Quality Improvement Plans(AQIPs) prepared for all major projects residential projects(i.e.,50 or more dwelling units).Equivalent dwelling unit determinations for non-residential or mixed use projects with equivalent dwelling units(EDUs)to a residential project of 50 or more dwelling units are provided in Exhibit 1. Please note that the Section numbers have been predetermined in order to accommodate the formatting requirements for Sectional Planning Area (SPA) Plans.Major project's that do not require the preparation of a SPA Plan shall apply a conventional numbering system. 11.7.1 Executive Summary This section of the AQIP shall provide a brief summary describing the intent of the AQIP,the project's goal with regards to community site design,specific planning features incorporated to achieve project goals,and the effectiveness of community design as demonstrated through preliminary modeling of the proposed project. 11.7.2 Introduction This Section of the AQIP shall describe the need to prepare an AQIP pursuant to the City's Growth Management (CVMC I9.09.050B) and how the AQIP has been prepared based on best available design practices which,in turn,will serve to implement several of the key aspects of the City's CO2 Reduction Plan and Green Building and Energy Efficiency Ordinances, CVMC 15.12 and 15.26.030 respectively. 11.7.2a. Purpose&Goals This section will describe the purpose of providing an Air Quality Improvement Plan. Provide a brief explanation of the regulatory framework identifying the authority and scope of the various Federal,State,and Local jurisdictions with regards to improving air quality,increasing energy efficiency,and CO2 reduction.As it pertains to local plans and policy,the AQIP shall describe how the project fulfills the City's commitment to improving air quality through compliance with the City's Growth Management Ordinance,Carbon Dioxide (CO2) Reduction Plan,and adopted Green Building and Increased Energy Efficiency Standards. 11.7.3 Project Description The project description shall include land use information,acreage,number of housing units, unit types and mixed-use areas. The project description shall include a Site Utilization Plan illustration from the SPA Plan document or similar site plan illustration for those projects that do not file a SPA Plan. 11.7.4 Effect of Project on Local/Regional Air Quality This section shall provide a generalized discussion on the proposed projects potential short-term and long term effects on local and regional air quality,including the projects contribution to global climate change or global warming.The discussion shall describe the project's mobile and stationary emission sources and related criteria pollutants (including those associated with short-term construction and long-term implementation),effect of project emissions on local and regional air quality,and community/site design features and mitigation measures that have been developed to reduce the projects effect on air quality. 11.7.5 Quantitative Project Evaluation Option 1: INDEX PlanBuilder(INDEX) This section of the document shall summarize the results of the INDEX modeling performed for the project.The section shall contain a written description of the project attributes that were considered in the modeling and the effect each of them had in terms of improving air quality,and reducing energy consumption and CO2 emissions.This discussion shall be supplemented with a table (refer to Table A-1 below) comparing the project's INDEX scores to the threshold scores for each Key Indicator. Definitions for each of the INDEX key indicators is provided in Exhibit 2. AQIP Rev 08.1 1 2015-02-17 AgendaPacke`f76 Fourth Avenue I Chula Vista I California 1 91910 1 (619) 691.5101 I ��/� D e v e l o p m e n t S e r v i c e s D e p a r t m e n t /Tr Planning Division I Development Processing CITY CHULA V ISTA AIR QUALITY IMPROVEMENT PLAN (AQIP) GUIDELINES V ATTACHMENT A TABLE A-1: Summary of Quantitative Modeling Results Threshold Compliance Status Element Indicator Units Score' SPA Plan Score Y/N Land Use Use Mix 0-1 scale 0.10 Use Balance 0-1 scale 0.60 Neighborhood Completeness %of key uses 60 Housing School Proximity to Housing avg walk ft to closest 3,200 Transit Proximity to Housing avg walk ft to closest stop 2,900 Employment Transit Proximity to Employment avg walk ft to closest stop 2,600 Recreation Park Proximity to Housing avg walk ft to closest park 1,700 Travel Internal Street Connectivity cul-de- 0.70 Intersection Density intersections/sq mi 210 Pedestrian Network Coverage %of streets w/sidewalks 81.0 Residential Multi-Modal Access %DU w/3+modes w/i 1/8 40.0 mi Daily Auto Driving VMT/capita/day 22.0 (3Ds Methodology) Climate Residential Building Energy Use MMBtu/yr/capita 29.0 Change Non-Residential Building Energy MMBtu/yr/emp 19.0 Use Residential Building CO2 Ibs/capita/yr 4,800 Emissions Non-Residential Building CO2 Ibs/emp/yr 3,100 Emissions Notes: 1.The threshold scores have been rounded from the INDEX baseline neighborhood composite scores. Option 2:Alternative to INDEX As noted in the AQIP Guidelines,developers/applicants have the option to run an alternative program such as LEED ND, Community Viz, PLACE3S,etc. provided that the results can be translated to clearly demonstrate equivalent compliance with thresholds established through INDEX for each of the required Key Indicators. AQIPs prepared through alternative modeling programs must summarize the modeling results in a format similar that which is described in Table A-1 and contain an equivalency spreadsheet demonstrating,to the satisfaction of the Director of Development Services,that the that energy and air quality improvements have been achieved consistent with the thresholds established through INDEX. 11.7.6 Community Design and Site Planning Features This section shall describe the effect the project's community design and site planning features have on air quality in terms of transportation,energy efficiency,and CO2 reduction.The focus of this discussion is to describe the specific strategies that have been integrated into the project to create a sustainable community; highlighting those project attributes designed to reduce air quality impacts through a combination of site design features intended to promote walking and alternate travel modes (transit, bikes,etc.), reduce vehicles miles traveled and improve energy conservation. It is expected that this discussion be project specific, referencing as appropriate,acreages, unit counts, residential proximity to schools,transit facilities, parks, etc. Providing a generic list of community design and site planning features will not be accepted. For projects located within Otay Ranch,additional information related to the Otay Ranch General Development Plan (GDP) implementing policies and how they can reduce CO2 emissions is provided in Appendix C of City's CO2 Reduction Plan. 11.7.7 Chula Vista CO2 Reduction Plan This section the document shall provide a comparative evaluation between the project's community/site design features and the energy efficiency and emission reduction action measures contained in the City's Carbon Dioxide (CO2) Reduction Plan. The following table (Table A-2) contains action measures as identified in the CO2 Reduction Plan and shall be included in each AQIP to demonstrate how the project has been designed to help implement the action measure listed in the City's CO2 Reduction Plan. (Note:Action measures 1-5,and 17 will be implemented by the City and are not included in the table and do not need to be addressed in the AQIP) I I AQ8P Re 11 2015-02-17 AgendaPacka76 Fourth Avenue Chula Vista California I 91910 I (619) 691.5101 I ��/� D e v e l o p m e n t S e r v i c e s D e p a r t m e n t /Tr Planning Division I Development Processing CITY CHULA V ISTA AIR QUALITY IMPROVEMENT PLAN (AQIP) GUIDELINES V ATTACHMENT A TABLE A-2: Summary Project Consistency with CO2 Reduction Action Measures ❑ Project/Community Describe how project design Action Measure❑ Design Features will Implement CO2 Reduction ❑ Action Measures Measure 6(Enhanced Pedestrian connections to Transit):Installation of walkways and crossings between bus stops and surrounding land uses. Measure 7 Increased Housing Density near Transit: General increase in land use and zoning designations to reach an average of at least 14-18 dwelling units per net acre within'%mile of major transit facilities. Measure 8(Site Design with Transit Orientation):Placement of buildings and circulation routes to emphasize transit rather than auto access;also includes bus turn-outs and other transit stop amenities. Measure 9(Increased Land Use Mix):Provide a greater dispersion/variety of land uses such as siting of neighborhood commercial uses in residential areas and inclusion of housing in commercial and light industrial areas. Measure 10(Reduced Commercial Parking Requirements):Lower parking space requirements;allowance for shared lots and shared parking; allowance for on-street spaces. Measure 11(Site Design with Pedestrian/bicycle Orientation):Placement of buildings and circulation routes to emphasize pedestrian and bicycle access without excluding autos;includes pedestrian benches,bike paths, and bike racks. Measure 12(Bicycle Integration with Transit and Employment):Provide storage at major transit stops and employment areas. Encourage employers to provide showers at the place of employment near major transit nodes. Measure 13(Bike Lanes,paths,and Routes):Continued implementation of the City's bicycle master plan.Emphasis is to be given to separate bike paths as opposed to striping bike lanes on streets. Measure 14(Energy Efficient Landscaping):Installation of shade trees for new single-family homes as part of an overall city-wide tree planting effort to reduce ambient temperatures,smog formation,energy use,and CO2. Measure 15(Solar Pool Heating):Mandatory building code requirement for solar heating of new pools or optional motorized insulated pool cover. Measure 16(Traffic Signal&System Upgrades):Provide high-efficiency LED lamps or similar as approved by the City Engineer. Measure 18(Energy Efficient Building Recognition Program):Reducing CO2 emissions by applying building standards that exceed current Title 24 Energy Code requirements. Measure 20(Increased Employment Density Near Transit):General increase in land-use and zoning designations to focus employment- generating land-uses within'%mile of major transit stops throughout the City. AQIP Rev 08.1 1 2015-02-17 AgendaPacke176 Fourth Avenue I Chula Vista I California I 9 19 10 I (6 19) 691.5101 I ��/� D e v e l o p m e n t S e r v i c e s D e p a r t m e n t /Tr Planning Division I Development Processing CITY OF CHULA VISTA AIR QUALITY IMPROVEMENT PLAN (AQIP) GUIDELINES ATTACHMENT A 11.7.8 Credit Towards Increased Minimum Energy Efficiency Standards Detailed provisions related to the calculation and application of credits are currently under development and subject to subsequent review and approval of City Council. 11.7.9 Compliance Monitoring This section of the AQIP shall provide a written description and a checklist summarizing the project design features and mitigation measures that have been identified to reduce the projects effects on air quality and improve energy efficiency. The following checklist shall be completed with input provided by the City and included in the project AQIP to ensure the project features described in the AQIP are sufficiently implemented: TABLE A-3: Compliance Monitoring Checklist [insert project title] Air Quality Improvement Plan Compliance Monitoring Checklist Method of Verification' Timing of Verification Responsible Party 2 Project Consistency& ❑ Compliance ❑ Documentation3 TM Pre Cons Post Cons. Cons. Planning AQIP Project Design Features/Principles Mitigation Measure Building Green Building Standards Energy Efficiency Standards Notes: 1.Method of verification may include, but is not limited to, plan check, permit review,site inspection. 2.Identify the party responsible for ensuring compliance(City of Chula Vista,San Diego APCD,Other) 3.This column shall include all pertinent information necessary to confirm compliance including document type,date of completion,plan/permit number,special notes/comments,and contact information. AQIP Rev 08.11 2015-02-17 AgendaPacke176 Fourth Avenue I Chula Vista I California I 9 19 10 I (6 19) 691.5101 I ��/� D e v e l o p m e n t S e r v i c e s D e p a r t m e n t /Tr Planning Division I Development Processing CITY CHULA V ISTA AIR QUALITY IMPROVEMENT PLAN (AQIP) GUIDELINES V ATTACHMENT A - EXHIBIT 1 Examples of AQIP Equivalent Dwelling Unit Determinations The City's Growth Management Ordinance, requires an Air Quality Improvement Plan (AQIP) to be submitted with all Sectional Planning Area (SPA) Plans or major development projects consisting of 50 dwelling units or greater(or non-residential or mixed use projects with equivalent air quality impacts to a residential project of 50 or more dwelling units).The following equivalencies apply to non-residential or mixed-use projects: Commercial projects of 12 or more acres (or equivalent square footage).Applying typical height and site development standards from the City's commercial zones,equivalent building square footage for a 12-acre commercial project is 210,000 square feet. ■ Industrial projects of 24 or more acres(or equivalent square footage).Applying typical height and site development standards from the City's industrial zones,equivalent building square footage for a 24-acre industrial project is 420,000 square feet. Mixed Use projects with a cumulative threshold equal to that of 50 or more residential dwelling units. Using the example calculations provided below, mixed use projects with a score greater than 1.0 will be required to prepare an AQIP pursuant CVMC 19.09.0506. Example Mixed Use Calculations: Example 1:Proposed Mixed-Use Project Equivalency Calculation Residential: 20 dwelling units 20/50= 0.4 Commercial:8 acres 8/12 =0.67 Industrial: 0 acres 0/24 =0 Total 1.07 (Score > 1.0:AQIP Required) Example 2:Proposed Mixed-Use Project Equivalency Calculation Residential: 10 dwelling units 10/50= 0.2 Commercial:8 acres 8/12 =0.67 Industrial: 0 acres 0/24 =0 Total 0.87 (Score < 1.0:AQIP Not Required) Example 3:Proposed Mixed Use Project Equivalency Calculation Residential: 0 dwelling units 0/50 =0 Commercial:5 acres 5/12 =0.67 Industrial: 18 acres 18/24= 0.75 Total 1.16(Score > 1.0:AQIP Required) I I AQ8P Re 11 2015-02-17 AgendaPacka76 Fourth Avenue Chula Vista California I 91910 I (619) 691.5101 I ��/� D e v e l o p m e n t S e r v i c e s D e p a r t m e n t /Tr Planning Division I Development Processing CITY CHULA V ISTA AIR QUALITY IMPROVEMENT PLAN (AQIP) GUIDELINES V ATTACHMENT A - EXHIBIT 2 INDEX Indicator Definitions ELEMENT INDICATOR DEFINITION Land Use Use Mix Proportion of mixed or dissimilar developed land-uses among a grid of cells of user-defined size,expressed on a scale of 0 to 1. Includes vertical dissimilarity in mixed-use cells. Use Balance Proportional balance of developed land-uses,by land area,expressed on a scale of 0(low)to 1(high). Neighborhood Completeness Percent of the following key uses present inside the SPA:1)fire/police station,2)library, 3)park,4)school,and 5)general retail opportunities. Housing School Proximity to Housing Average walk distance from all dwellings to closest designated school. Transit Proximity to Housing Average walk distance from all dwellings to closest designated transit stop. Employment Transit Proximity to Employment Average walk distance from all businesses to closest designated transit stop. Recreation Park Proximity to Housing Average walk distance from all dwellings to closest public or private park. Travel Internal Street Connectivity Ratio of street intersections versus intersections and cul-de-sacs or dead-ending streets. Intersection Density The number of street intersections per square mile. Pedestrian Network Coverage Percent of total street frontage with improved sidewalks on both sides. Residential Multi-Modal Access Percent of dwellings within 1/8 mi.of three or more travel modes(bike,car,transit,or walk). Daily Auto Driving Average daily vehicle miles traveled per capita. Threshold value is used as the baseline (3Ds Methodology) score;proposed SPA plan value calculated from 3D Methodology indicator elasticities. *Street Network Density Density of streets in centerline miles per square mile. *Pedestrian Network Coverage Percent of total street frontage with improved sidewalks on both sides. *Street Route Directness Weighted average ratio of shortest drivable route distance versus straight-line distance, from residents and employees of developed parcels to central node destination. Climate Change Residential Building Energy Use Annual MMBtu per capita for residential structural energy use. Units in MMBtu/yr/capita. Non-Residential Building Energy Use Annual MMBtu per employee for retail,office,and general commercial building operations energy use. Units in MMBtu/yr/emp. Residential Building CO2 Emissions CO2 pollution emitted from residential buildings,including operations and embodied CO2. Units in Ibs/capita/year. Non-Residential Building CO2 Emissions CO2 pollution emitted from retail,office,and general commercial buildings,including operations and embodied CO2. Units in Ibs/capita/year. AQIP Rev 08.11 2015-02-17 AgendaPacke176 Fourth Avenue I Chula Vista I California 1 9 19 10 1 (6 19) 691.5101 I ��/� D e v e l o p m e n t S e r v i c e s D e p a r t m e n t /Tr Planning Division I Development Processing CITY CHULA V ISTA AIR QUALITY IMPROVEMENT PLAN (AQIP) GUIDELINES V ATTACHMENT A - EXHIBIT 3 Commonly Recognized Principles and Practices of Smart Growth EXAMPLES SMART GROWTH DESCRIPTIONS Transit-oriented development(TOD) Encouraging transit travel by developing moderate-to high-density housing,shopping,and employment centers at key access points along a regional transit system,with enhanced pedestrian access. Transportation Options(Multi-model Streets) Design streets to create balance for all modes of transportation,including pedestrians,bicyclists,vehicles and public transit Mixed-use development Development that locates complementary land uses such as housing,retail,office,services,and public facilities within walking distance of each other.This can include both vertical mixing(such as residential above shops)as well as horizontal- Pedestrian-oriented development. Providing a combination of land use and urban design elements that encourage and make people want to walk thereby creating pedestrian oriented neighborhoods. Developing concentrated activity centers Encouraging pedestrian and transit travel by creating"nodes"of high density mixed development,that can be more easily linked by a transit network Strengthening downtowns: Encouraging pedestrian and transit travel by making central business districts concentrated activity centers that can be the focal point for a regional transit system Sustainable Design Incorporate"Green Building"and/or energy efficiency techniques that can have a positive effect on building sustainability and resource conservation- Jobs/housing balance Reducing the disparity between the number of residences and the number of employment opportunities by directing employment developments to areas with housing,and vice versa. Landscape Design Incorporate landscaping in a manor that reduces heat islands and energy costs by providing shading and improves air quality by reducing/filtering common air pollutants(i.e.carbon sequestering). The smart growth strategies listed above are commonly recognized by organizations such as the Environmental Protection Agency(EPA), Urban Land Institute(ULI), National Association of Home Builders (NAHB),San Diego Association of Governments (SANDAG),and the Smart Growth Network. The Applicant may apply comparable principles and techniques from alternative sources that are deemed acceptable by the City.Additional information, fact sheets,case studies,and publications related to current smart growth design practices is available through the following organizations: EPA: http://www.epa.gov/smartgrowth SANDAG's "Designing for Smart Growth",January 2009: http://www.sandag.org NAHB: http://www.nahb.org ULI: http://www.uIi.org/CommunityBuiIding/RegionaILeadershipandCooperation/Smart%20Growth.aspx Smart Growth Network: http://www.smartgrowth.org AQIP Rev 08.1 1 2015-02-17 AgendaPacke176 Fourth Avenue I Chula Vista I California 1 9 19 10 1 (6 19) 691.5101 I ��/� D e v e l o p m e n t S e r v i c e s D e p a r t m e n t /Tr Planning Division I Development Processing CITY CHULA V ISTA AIR QUALITY IMPROVEMENT PLAN (AQIP) GUIDELINES V ATTACHMENT B INDEX Modeling Information and Administrative Procedures Step 1:City Review of Project Submittal Prior to initiating any quantitative modeling,the City shall review of the applicant's project submittal to ensure that the project represents the best available design to improve air quality and energy efficiency consistent with the City's Growth Management Ordinance,Municipal Code Section 19.09.050B,Carbon Dioxide (CO2) Reduction Plan,and Green Building and Increased Energy Efficiency Ordinances (CVMC 15.12,and 15.26.030, respectively).The City's initial review will focus primarily on community site design. Following the City's review,staff may suggest refinements to the proposal that may in turn result in more favorable modeling results. Step 2:Consultant Contracting The applicant shall have their project modeled in conjunction with the City's second review of the SPA Plan.The Applicant is responsible for the costs of retaining the consultant to perform the INDEX modeling services and may choose to either: 1) enter into a three-party agreement with the City and the consultant providing the INDEX modeling services or,2) contract directly with the consultant providing the INDEX modeling services. If the applicant chooses to contact directly with the consultant,then the applicant will be required to provide the City with cash deposit for third party independent review. Step 3:Submittal of Documents As part of the second draft SPA Plan review,the applicant must submit,to the City,the following project information in GIS Shapefile: IMPUT SHAPEFILE DATA TYPE IMPUT ATTRIBUTE Case(neighborhood) Polygon Regional Populationl Boundary Regional Employment2 Land Uses- (parcels) Polygon Land-Use Type Dwelling Unit Count Residential Population per DU(based DU type-MF or SF) Employment Count Employment Floor Area(sqft) Pedestrian Routes-(streets+ Line None off road pedestrian trails,freeways &ramps excluded) Points of Interest Point Interest Group(central node,amenity-typically grocery or school) Street Centerlines Line Street Group(functional class) Percent of Segment with Sidewalks Supplementary Land Uses Polygon Parcels with multiple uses that include the following:parks,schoolyards,and open space. Transit Routes Line Transit Group(bus,light rail,heavy rail) Route Number Transit Stops Point Transit Group(bus,light rail,heavy rail) Notes: 1,2.Regional census data can be obtained through SANDAG and must be provide through a separate spreadsheet. AQIP Rev 08.11 2015-02-17 AgendaPacke176 Fourth Avenue I Chula Vista I California 1 91910 1 (619) 6 91.5 101 I ��/� D e v e l o p m e n t S e r v i c e s D e p a r t m e n t /Tr Planning Division I Development Processing CITY CHULA V ISTA AIR QUALITY IMPROVEMENT PLAN (AQIP) GUIDELINES V ATTACHMENT B Step 4:Verification of Required INDEX Input Attributes Once the City has received electronic copies of all required project input attributes,the City will submit the project documentation to the consultant providing the INDEX modeling.The consultant will then review the submittal to verify that all required information has been provided and has been converted into a GIS format acceptable to run the INDEX model. Only after the City has received confirmation from the INDEX modeling consultant that all necessary material has been provided and is in the proper format,may the quantitative modeling may proceed. Step 5:Quantitative Modeling Based on the information submitted by the applicant,the consultant providing the INDEX modeling,will model the project thorough a selection of twenty key indicators that will measure the project's attributes and performance characteristics against the City's required minimum baseline scores. In order to deem the proposed project consistent with the City's adopted strategies for improving air quality and energy conservation,the project must demonstrate improvements at or beyond the City's performance threshold scores established for each of the key indicators. If the initial modeling results indicate that the project does not satisfy the City's minimum performance thresholds,the applicant shall refine/design the project accordingly,and have it reevaluated through the model until consistency with the established performance thresholds has been achieved. Step 6: Project Approval Upon successful completion of the INDEX modeling,the consultant providing the INDEX Modeling services shall provide written confirmation to the City's Director of Development Services that the project as proposed represents improvements at or beyond the City's performance threshold scores established for each of the key indicators. In the event that a project is unable to comply with all key indicator thresholds do to unique circumstances involving project design and/or pre-existing environmental/land-use conditions,the Developer/Applicant may request,in writing to the City's Development Services Director(or their designee),a waiver to exclude those key indicators that,in the applicant's opinion,are not applicable to their project.The discretion to exclude certain key indicators from project evaluation rests exclusively with the City's Development Services Director(or their designee). al2015-02-17 AgendaPacke`f76 Fourth Avenue I Chula Vista I California 1 91910 1 (619) 691.5101 P l a n n i n g & B u i l d i n g D e p a r It m e n It CITY OF Planning Division I Development Processing CHULA VISTA Water Conservation Plan Guidelines Part One—General City Requirements The City of Chula Vista Growth Management Ordinance, Municipal Code Section 19.09.050C, requires a Water Conservation Plan (WCP) to be submitted with all Sectional Planning Area (SPA) Plans. If a SPA Plan is not required, a WCP is required to be submitted with Tentative Subdivision Maps. The Growth Management Program further requires that a Water Conservation Plan be submitted for major development projects, defined as residential projects consisting of 50 dwelling units or greater, or commercial and industrial projects with 50 Equivalent Dwelling Units (EDU's) of water demand or greater. (See Part Six for an explanation of EDU's.) The WCP shall provide an analysis of water usage requirements of the proposed project, as well as a detailed plan of proposed measures for water conservation, use of reclaimed water, and other means of reducing per capita water consumption from the proposed project, as well as defining a program to monitor compliance. Part Two—Water Conservation Plan Outline Water Conservation Plans shall be consistent with the format and content identified in the Water Conservation Plan Outline, Attachment A. Part Three— Residential Water Conservation Measures All residential projects subject to the WCP requirements shall provide the following conservation measures in all dwelling units as more particularly described in Attachment B: a. Hot-Water Pipe Insulation. b. Pressure Reducing Valves. c. Water Efficient Dishwashers. d. At least one outdoor water conservation measure from the Residential Water Conservation Measures list. e. At least one additional water conservation measure from either the indoor or outdoor categories identified on the Residential Water Conservation Measures list. f. Water conservation measures not found on the Residential Water Conservation Measures list may be proposed consistent with the provisions of Part Five below. Part Four— Non-Residential Water Conservation Measures All non-residential projects subject to the WCP requirements shall provide the following conservation measures as more particularly described in Attachment C: a. Hot-Water Pipe Insulation. b. Pressure Reducing Valves. c. At least one outdoor water conservation measure from the Non-Residential Water Conservation Measures list. d. At least one additional water conservation measure from either the indoor or outdoor categories identified on the Non-Residential Water Conservation Measures list. e. Water conservation measures not found on the Non-Residential Water Conservation Measures list may be proposed consistent with the provisions of Part Five below. 2015-02-17 Agenda NcEkefourth Avenue I Chula Vista I California 1 91910 (619) 691-5101 Page 419 City Of Chula Vista Water Conservation Plan Guidelines - Page 2 Part Five— Future Water Conservation Technology and/or Measures The Developer may submit a Water Conservation Plan containing alternate water conservation measures not found on the Residential and Non-Residential Water Conservation Measures list. The alternate water conservation measures must be accompanied by data confirming, to the satisfaction of the City, the water savings achieved by implementing the measures. The Director of Planning and Building or his/her designee will evaluate in his/her discretion the alternate water conservation measures for consistency with the objectives of the Water Conservation Guidelines. Alternate water conservation measures may be approved through the review and approval process for the Water Conservation Plan. Part Six — Using Equivalent Dwelling Units (EDU's) to Determine Water Conservation Plan Requirements for Non-Residential and Mixed Use Projects. The following water demand equivalencies apply to non-residential or mixed use projects: a. Commercial projects of 12 or more acres. b. Industrial projects of 24 or more acres. c. Mixed Use projects with a cumulative estimated water demand of 21,200 gallons per day. The average daily water consumption per household as estimated by the American Water Works Association Research Foundation is 424 gallons per day (gpd). Major development projects are defined as projects that use the equivalent water demand for 50 residences, or 21,200 gallons per day. Using an estimated water demand factor of 1785 gallons per day per acre for commercial land, and an estimated water demand factor of 893 gallons per day per acre for industrial land, a commercial site of 12 acres and greater and an industrial site of 24 acres and greater would be required to prepare WCP's. For projects with more than one use, the threshold for requiring a Water Conservation Plan would be a cumulative estimated project water demand of 21,200 gallons per day, based on these factors as approved by the City. Infill or redevelopment projects that provide information, to the satisfaction of the City, indicating the net water demand increase resulting from the proposed land use does not exceed 21,200 gallons per day will not be required to prepare a Water Conservation Plan. Adopted May 27, 2003 2015-02-17 AgendaPack&76 Fourth Avenue I Chula Vista California 1 91910 (6 19) 691-5101 Page 420 P l a n n i n g & B u i l d i n g D e p a r t m e n t CITY OF Planning Division I Development Processing CHUTA VISTA Water Conservation Plan Outline Attachment A The following outline sets forth the format and content of the Water Conservation Plan (WCP). The Water Conservation Plan shall provide an analysis of water usage requirements of the proposed project, a detailed plan of proposed measures for water conservation, use of recycled water, and other means of reducing per capita water consumption from the proposed project, as well as defining a program to monitor compliance. All SPA Plans must incorporate the following numbering system consistent with the master planned communities SPA plan outline. For projects that do not require a SPA Plan a comparable numbering sequence is to be used. (e.g. 11.8.1, 11.8.2 replaced with 1., 2.) SECTION 11.8 WATER CONSERVATION PLAN Table of Contents Abbreviations, Terms and Water Equivalencies 11.8.1 Executive Summary Provide a brief summary of the Water Conservation Plan. Particular emphasis is to be given to the water conservation measures identified for implementation in the project. 11.8.2 Introduction Identify the project and list goals of the project's Water Conservation Plan. 11.8.3 Purpose Describe the purpose of providing a Water Conservation Plan. Identify the authority and scope of the City of Chula Vista, State, and Federal regulations, where applicable. A brief explanation of how the project has addressed regulations is to be included. 11.8.4 Project Description Project description including land use information, acreage, number of housing units, unit types and mixed-use areas. Include the Site Utilization Plan illustration from the Sectional Planning Area (SPA) Plan document. 11.8.5 Water Service and Supply Identify the local water agency that will supply potable and recycled water to the project site. 11.8.6 Projected Water Use Potable Water Demand Summarize the potable water demand in a table based on land use type and projected residential density. Base the unit demand on data provided by the water purveyor. Recycled Water Demand Summarize recycled water demand in a table and identify recycled water use areas in the project using an illustration. Use the unit demand factor consistent with the water purveyor. Include land use, acreage, percent to be irrigated, irrigated acreage and gallons per day for all land use types within the project. 2015-02-17 Agenda HcEkefourth Avenue I Chula Vista I California 1 91910 1 (619) 691-5101 Page 421 City Of Chula Vista Water Conservation Plan Outline Attachment A- Page 2 11.8.7 State and Federal Water Conservation Requirements List the Federal and State mandated minimum water conservation standards. 11.8.8 Local Water Conservation Requirements Description of local water conservation standards including requirements of the water purveyor and the City of Chula Vista Landscape Manual. Description of indoor water conservation measures as required by the Water Conservation Plan Guidelines and additional indoor and outdoor water conservation measures to be used in the project. (See Attachments B &C) Any additional water conservation measures to be offered by merchant builders as an option for homebuyers are to be included in this section. 11.8.9 Water Conservation Estimated Savings Total estimated potable water savings (gallons per day)for the project due to implementation of the additional conservation measures. 11.8.10 Implementation Measures List the water conservation measures to be implemented in the project and summarize the water conservation program including any efforts involving merchant builders, local water purveyors the City and any other public or private agencies. 11.8.11 Monitoring Summarize the implementation timing for each water conservation measure including the responsibility for monitoring and reporting on the effectiveness of the measure if applicable. References Appendix Adopted May 27, 2003 2015-02-17 Agenda NcEkefourth Avenue I Chula Vista California 1 91910 (619) 691-5101 Page 422 P l a n n i n g & B u i l d i n g D e p a r t m e n t CITY OF Planning Division I Development Processing CHULA VISTA Residential Water Conservation Measures Attachment B All residential units subject to the Water Conservation Plan requirements shall contain the following three indoor water conservation measures: Savings & Costs data are estimates based on the Water Use Efficiency, Strategies for Proposed Residential Developments, April 2002 report and are provided for information only. 1. Hot Water Pipe Insulation Insulation of hot-water pipes, and separation of hot and cold water piping to avoid heat exchange. Savings & Costs Water savings - 2,400 gallons per residential unit per year. Estimated cost of insulating hot water pipes during construction -$50.00. 2. Pressure Reducing Valves Pressure reducing valves maintain the pressure below 60 psi reducing the volume of any leakage present and preventing excessive flow of water from all appliances and fixtures. Savings & Costs Water savings - 1,800 gallons per unit per year. Estimated cost of pressure reducing valves -$100.00. 3. Water-Efficient Dishwashers Dishwashers with water saving features such as water level sensors instead of timed fillers. The website <www.energystar.goy/products/dishwashers/> may be consulted for a current list of Energy Star label dishwashers. Savings & Costs Water savings—650 gallons per unit per year. Estimated cost of water efficient dishwashers $300.00 to$700.00. All residential units subject to the Water Conservation Plan requirements shall contain at least one outdoor water conservation measure and at least one additional water conservation measure from either the indoor or outdoor categories. Outdoor Water Conservation Measures 1. Evapotranspiration (ET) Controllers Timed, fixed irrigation scheduling based on estimates of actual plant evapotranspiration rates. Radio signal from a central control station or satellite transmits information to the controllers to operate the sprinklers for the appropriate length of time. Savings & Costs Water savings —20,000 gallons per single-family unit per year. The cost is estimated to be $175.00 per installed controller and may require a signal and maintenance fee, estimated to be$48.00 per year. 2015-02-17 Agenda Pidkefourth Avenue I Chula Vista I California 1 91910 1 (6 19) 691-5101 Page 423 City of Chula Vista Water Conservation Plan Attachment B - Page 2 Outdoor Water Conservation Measures (cont.) 2. Water-Efficient Landscaping Use of drought tolerant plant materials, irrigation systems, and controllers as required by the Chula Vista Landscape Manual. In addition, the use of drip irrigation where possible and restriction of sprinkler irrigation as recommended by the water purveyors. Savings & Costs Water savings — Up to 50% of outdoor water use. For a 2,100 sq. ft. landscaped area a water savings of 12,000 gallons per year is estimated. The cost of water efficient landscaping is no different than conventional landscaping, possibly lower. 3. Xeriscape Xeriscaping is a combination of seven principles, planning and design, practical turf areas, efficient irrigation, soil analysis and improvement, mulching, low water use plants and appropriate maintenance. Savings & Costs Water savings—30% reduction in irrigation demand or about 16,000 gallons per year on a typical single-family lot. The cost of xeriscape does not exceed conventional landscape. 4. Soil Moisture Sensors Soil moisture sensors placed at two or more depths and at several locations in the landscape to help determine when the soil is dry enough to require irrigation. Savings & Costs Alone, soil moisture sensors do not achieve water savings. However, in combination with other systems they are important tools for water savings. The cost of each sensor is approximately$235.00 and it is estimated that one or two soil moisture sensors are sufficient for a typical single-family lot (sunny and shady areas of landscape). Indoor Water Conservation Measures 1. Dual Flush Toilets Provides option to flush with partial (0.8 gallon)flow of water or with a full (1.6 gallon)flow depending on need. Savings & Costs It is estimated that a dual-flush toilet can save 4,000 gallons per year. Estimated cost of dual flush toilet - $200.00. 2. High-efficiency Washing Machines Front loading and top loading Energy Star qualified clothes washers that use 35% to 50% less water than conventional washing machines. A current list of Energy Star high efficiency clothes washers can be found at <www.enerqVstar.gov/products/clotheswashers/>. Savings & Costs Water savings—7,000 gallons per year. Estimated cost of high-efficiency washing machine$800.00. 3. Point-of-Use, or Tank-less Water Heater Installation of small water heaters close to the point of use, such as in bathrooms, kitchen and laundry area. Savings & Costs Water savings - 5,300 gallons per residential unit, per year. Estimated cost of point-of-use water heaters - $700.00. (The cost is approximately the same whether one large household unit is installed or three smaller ones at each point of use.) Optional Water Conservation Measures • Education Program including educational materials and guidance to new homeowners. • Submeter all individual tenants in multi-family projects. • Install waterless urinals in intensively used settings such as recreation areas and school sites. Adopted May 27, 2003 2015-02-17 Agenda Pidkefourth Avenue I Chula Vista California 1 91910 (6 19) 691-5101 Page 424 P l a n n i n g & B u i l d i n g D e p a r t m e n t CITY OF Planning Division I Development Processing CHULA VISTA Non-Residential Water Conservation Measures Attachment C All Non-Residential uses subject to the Water Conservation Plan requirements shall contain the following two indoor water conservation measures: 1. Hot Water Pipe Insulation Install insulation on all hot water pipes in all common areas and all tenant-developed areas. 2. Pressure Reducing Valves Provide pressure reducing valves at all meters, set to deliver water at no higher than 60 psi. All Non-Residential uses subject to the Water Conservation Plan requirements shall contain at least one outdoor water conservation measure and at least one additional water conservation measure from either the indoor or outdoor categories. Outdoor Water Conservation Measures 1. Water Efficient Irrigation System Use of rain sensors, and soil moisture measuring devices for scheduling and controlling all landscape irrigation programs in commercial, industrial and business centers including tenant areas. 2. Evapotranspiration (ET) Controllers Timed, fixed irrigation scheduling based on estimates of actual plant evapotranspiration rates. Radio signal from a central control station or satellite transmits information to the controllers to operate the sprinklers for the appropriate length of time. 3. Water-Efficient Landscaping Use of native vegetation and drought tolerant plant materials, avoiding grass and turf to the extent practical and use of irrigation systems and controllers as required by the Chula Vista Landscape Manual Use. In addition, the use of drip irrigation where possible and restriction of sprinkler irrigation as recommended by the water purveyors. 4. Recycled Water Expand use of recycled water beyond areas mandated by the water purveyor to those areas where landscaping is within a reasonable reach of recycled water pipelines, to the extent that such use is acceptable to regulatory authorities. 5. Outdoor Garden Sales All tenants with outdoor garden sales areas to install micro-irrigation systems (trickle or drip irrigation) and provide water conservation educational materials for customers. Indoor Water Conservation Measures 1. Dual-Flush Toilets Install dual-flush (ULFT)toilets in public restrooms including gas station restrooms. 2. Waterless Urinals Install waterless urinals in public restrooms (men's rooms) including gas station restrooms. 2015-02-17 Agenda NcEkefourth Avenue I Chula Vista I California 1 91910 1 (619) 691-5101 Page 425 City Of Chula Vista Water Conservation Plans Attachment C - Page 3 Indoor Water Conservation Measures (Cont.) 3. Pre-Rinse Sprayer on Sinks Install automatic shut-off sprayer for pre-rinsing dishes with a maximum flow rate of 1.6 gpm in all restaurant and fast- food units. 4. High-Efficiency Dishwashers Install high-efficiency dishwashers in restaurant buildings. 5. Air-Cooled Ice Machines Install air-cooled ice machines instead of water-cooled machines in restaurants. 6. Conductivity Meters Install conductivity meters on cooling towers to regulate cycling of cooling water and chemicals. Optional Water Conservation Measures • Submeter all individual tenants in buildings. • Provide educational materials and guidance to tenants. Adopted May 27, 2003 2015-02-17 Agenda NcEkefourth Avenue I Chula Vista California 1 91910 (619) 691-5101 Page 426 APPENDIX C — PUP Requirements Public Facility Finance Plans (PFFP) Requirements A Public Facility Finance Plan (PFFP) is a document that details infrastructure requirements for particular projects, and how the improvements will be funded. The Chula Vista Municipal Code (19.09.080) requires Public Facilities Finance Plans (PFFPs) for Sectional Planning Area (SPA) plans and Tentative Maps; they are also be required for development proposals of 50 dwelling units or more, and commercial or industrial projects with 50 equivalent dwelling units (EDUs) or greater. I. Initiation and Preparation Typically, PFFPs have been prepared early in the development review process, at the time a SPA plan is prepared; or, if no SPA is involved, as a part of the Tentative Map application. In some instances, the city may choose to incorporate the PFFP into other documents that meet the basic policy and technical requirements of a PFFP. For example, a PFFP could be incorporated into a Specific Plan or an area- specific financing plan sponsored by the city. In some instances, the city will sponsor preparation of a PFFP; for example, when the geographic coverage involved encompasses a large area with multiple landowners and no single development project. The procedures for such city-sponsored PFFPs will be similar to developer-sponsored PFFPs. Adoption of a PFFP does not establish any entitlement or right to any particular General Plan or zoning designation, or any particular development proposal. A PFFP may be initiated by filing an application with the Director of Development Services. The applicant shall pay a deposit at the time any application for a PFFP is accepted, and the PFFP shall be prepared by the city, or a consultant selected by the city (which is typical), according to the procedures established. In some instances, developer cooperation in the preparation of PFFPs (e.g., infrastructure design and cost estimating) is acceptable. In the case of a city-prepared PFFP, the city may recover the cost of PFFP preparation by adding the cost to the impact fees (or other financing mechanisms) created to fund the required public facility improvements. II. Content PFFP content requirements are outlined below. A. A PFFP shall include a complete description of the proposed development project and a complete description of all public facilities included within the boundaries of the plan, as defined by the Development Services Director. It shall also include a description of the individual and cumulative impacts of the proposed development on the community as it relates to the Growth Management Program, the specific facility master plans and the threshold standards. B. The PFFP shall consist of maps, graphs, tables, and narrative text and shall be based upon the General Plan and zoning applicable within the area of impact. It shall be consistent with the Growth Management Program and threshold standards and shall implement the Growth Management Program within the area. 1 2015-02-17 Agenda Packet Page 427 APPENDIX C — PUP Requirements C. The boundaries of the PUP shall be established by the city at the time a SPA plan or Tentative Map is submitted by the applicant. The boundaries shall be based upon the impact created by the project on existing and future need for facilities. The project boundaries will correlate the proposed development project with existing and future development proposed for the area of impact to provide for the economically efficient and timely installation of both on-site and off- site facilities and improvements required by the development. In establishing the boundaries for the PFFP, the city shall be guided by the following considerations: 1. Service areas or drainage or sewer basins that serve the project; 2. Extent to which facilities or improvements are in place or available; 3. Ownership of property; 4. Project impact on public facilities relationships, especially the impact on the city's planned major circulation network; 5. Special district service territories; and 6. Approved fire, drainage, sewer, or other facilities or improvement master plans. D. The boundaries shall be established by resolution after a public hearing, notice of which is given pursuant to CVMC 19.12.070. E. The PUP shall show how and when the facilities and services necessary to accommodate development within the area will be installed or financed: 1. Police; 2. Fire/Emergency Medical Services; 3. Schools; 4. Libraries; 5. Parks and Recreation; 6. Water; 7. Sewer; 8. Drainage; and 9.Traffic; F. The PUP shall include the following information with regard to each facility and service listed in Section E, above: 2 2015-02-17 Agenda Packet Page 428 APPENDIX C — PUP Requirements 1. List of Facilities and Services. A list or schedule of facilities and service requirements correlated to individual development projects within the area. 2. Inventory. An inventory of present and future requirements for each facility and service based upon the threshold standards. The inventory shall include life cycle cost (LCC) projections for each element in Section E, above, as they pertain to city fiscal responsibility. The LCC projections shall be for estimated life cycle for each element analyzed. The model used shall be able to identify and estimate initial and recurring life cycle costs for the above elements. Because requirements for certain facilities and services may overlap plan boundaries, the plan shall address the need for coordination and shall propose a coordination plan for facilities and services extending from one project boundary area to another. Cost estimates for funding public facilities and services directly related to the impact created by the project as well as for proposals for funding existing deficiencies required by the project prior to the phasing schedule set forth in the Growth Management Program shall be included. It must be shown that development in the area will not reduce the existing facilities or services capabilities within the project boundaries or create facilities or improvements shortages in other areas or reduce capability in any area below the threshold standards, which are established pursuant to CVMC 19.09.040-050. The growth inducing impact of the out-of-area improvements shall be assessed and mitigation provided, if appropriate, to the satisfaction of the city council. 3. Phasing Schedule. A phasing schedule that complies with the adopted development phasing policy as set forth in the Growth Management Program and the threshold standards, which establishes the timing for installation or provision for facilities and services required by the project. The phasing schedule shall ensure that development of one area will not utilize more than the area's pro rata share of facility or service capacity within the projected service area of a facility unless sufficient capacity is ensured for other areas at the time of development.The phasing schedule shall include a schedule of development within the area and a cash flow analysis for financing of facilities and services for the PUP area. The phasing schedule shall identify periods where the demand for facilities and improvements may exceed the capacity and provide a plan for eliminating the shortfall. If a project cannot demonstrate consistency with the phasing schedule, the PUP must demonstrate, to the city's satisfaction, how facilities required for the project in advance of the phasing schedule as set forth in the master plan will be provided. If no facility master plan or threshold standard exists for a particular facility, the PUP for the project must demonstrate how that facility will be provided and financed in a phased and timely manner. 4. Financing Plan. A financing plan establishing specific methods of funding each facility and service identified in the PFFP, which allocates the cost to the various properties within the plan area. The plan shall identify those facilities and services that would otherwise be provided as a requirement of processing a development project (i.e., requirements imposed as a condition of a development permit) or provided by the developer in order to establish consistency with the General Plan, Growth Management Program or facility master plans, and those facilities and improvements for which new funding methods shall be sufficient to ensure that funds are available to construct or provide facilities or services when required by the phasing schedule for the project. Where facilities or services are required for property within the PUP area, other than the project, the phasing plan shall identify those 3 2015-02-17 Agenda Packet Page 429 APPENDIX C — PUP Requirements other properties and the PUP for each property shall be coordinated. Coordination, however, shall not require identical funding methods. G. The PUP shall establish the proportionate share of the cost of facilities and services identified in the Growth Management Program and the facility master plans attributable to the development of each property in the PUP area. H. In the event that an applicant provides private financing for public facilities or services to service a project in advance of the normal time frame for constructing such facilities, the approval of credits against any city fees for such advanced private financing may be postponed until the estimated time of such construction as specified in the specific facility master plan or the city's capital improvement program budget. In lieu of a facility master plan phasing schedule, such determination shall be made by the city council after reviewing information from the Development Services Director, City Engineer, Finance Director, and Deputy City Manager. In no event shall a developer receive interest on funds for providing public facilities or services in advance of the city's schedule. The developer shall also become responsible for the maintenance and operation costs associated with the early construction of said facility. No repayment will be made to the developer for the funds provided for maintenance and operational costs. All repayments will be considered in accordance with the city's projected construction dates for said facilities. I. Assessment districts requested by the developer shall not be given credit for facility fees when a facility is constructed above the standards established by the respective facility master plan or standards imposed as conditions on the approval of the project by the city council. J. A fiscal analysis/economic impact report shall be provided identifying capital budget impacts on the city as well as maintenance and operation costs for each proposed phase of development. The report shall include an analysis of the project impact on school districts and water agencies as well as the life cycle analysis set forth in Section F.2, above. Each year during the development of the project, the Development Services Director may require the applicant to provide the city with an updated fiscal impact report reflecting the actual revenue and expenditure impacts based upon the development of the project. The project shall be conditioned to provide funding for periods where expenditures exceed projected revenues. K. Developer contributions shall not be required as a source of funding for that proportion of the cost of any facility or service that is needed to reach threshold standards due to the demands created by existing development. (Ord. 2790, 1999; Ord. 2448 § 2, 1991). III. Public Facilities Finance Plan Amendment The City Council may initiate an amendment to any PUP at any time if, in its discretion, it determines that an amendment is necessary to provide adequate facilities and improvements, and subsequent permits will be conditioned on conformance. An applicant can also initiate an amendment to a PUP that was originally adopted for their project, following the same procedures as those for establishing a new PFFP. 4 2015-02-17 Agenda Packet Page 430 ATTACHMENT-2 Chapter 19.09 GROWTH MANAGEMENT Sections: 19.09.010 Purpose/mod+Intent, Policies and Findings. 19.09.020 Definitions, 19.09.030 Growth mManagement pProgram Implementation Manual. 19.09.040 Quality e tThreshold sStandards for City Facilities and Services. 19.09.050 Threshold Standards for External Facilities and SeMcces. N. 19.09.0660 Amendments and Supplemental Threshold Standards. glass= 19.09.0670 Moratorium on Buildinq Permits Allow°ed.-D�=b�, oa!itC plan Ts,,.iteT^,ts: X"K 19-09.07-80 Requirement for-Public fFacilities €Financens(PFF Air Quality Improvement Plans and Water Conservation Plans 19.09.0890 -Public fFacilities fFinan ee PPlan (PFFP) Cont",Is. 19.09.01900 Public fFacilities €Finance pPanl (PFFP 1preparation.implemeniataort 19-09-1910 Public fFacilities €Finance pPlan PFFP Review.°^n° ^^°nt. 19.09.1420 Public Facilities Finance Plan PFFP Im plementation. . 19.09.1 L230 Rablid acilities Finance Plan (PFFP)Amendment.ExteRsions of p ^'n 19.09.1340 Except Obn and Exclusions.0blig., iOR +„ pay fees RGtan f@G114jeS . Fea ' 19-09.1450 Ex Mio f Prior Approvals. . 19.09-flho O-Ii a1'i�on to Pa Fees or Install Facilities Required b An Other Law.Ge�il 19.09`.4970 Implementing ProceduresSeverabilit�}. 19.09.V7,80 Council Actions. Fees. Notice.FaGility master plan referenc-8 . 19 09�190 Severabilit . 19.090.200 Facility Master Plans. 1 2015-02-17 Ag@14da Packet - Page 431 19.09.010 Purpose/ and Policies and Findings. A. -,Purpose/intent The purpose and intent of this chapter is to: 1) Implement the policy framework_established by Chula Vista's General Plan for Chula Vista's Growth Management Program; 2)Codify threshold standards designed to assure that, as new development occurs, public facilities, infrastructure and services will exist, or concurrently be provided, to meet the demands generated by new development, and service levels toAx'isting residents will not be reduced; and 3) Establish administration and compliance mechanisms. A' ti B. Policies s It is the policy of the city of Chula Vista to: 1. IRFevide quality housing OPPOF46IRities for All PADROMd r s6ippeFt the residential areas of theitJ k 3. Provide that pyblIG facilities, SeFV'GeS and lmnpr —y standards ex st GF beGome available GonGurrent with the need Gpeated by new develapment� l �S �. W 1. Provide that public facilitkes, infrastructure d services meet the threshold standards set forth in this 'g� gg' chapter, and are provided uvance:of or concurrent with the demands created by new development: 2. Assure that individuaMev tom ,t projects measure Qotential.impacts upon public facilities infrastructure and services and provide a.ptaMor funding improvements needed to meet the threshold standards set forth in this cha,,�Nl� 3. Provide ualit o -opportunities for all economic segments of the community; ti y 4. Provide a�bala'nced community with adequate commercial. industr4, recreational and open space areas to ..W support the residential areas of the city: 45. Balance the regional housing needs of t���g: against the public service needs of Chula Vista residents and available fiscal resources. aad-environmental constraints. resource and quality of life considerations; 66. Provide that all development is consistent with the Chula Vista general plan; 2 2015-02-17 Ageuda Parket Page 432 67, Limit or P-prevent growthadditional development unless „de„" t° if public facilities. infrastructure and servicesimprovements meeting the threshold standards set forth in this chapter are not rovlded in a timely.. phased and logical mannerfashion. as required by the @General pPlan; 8. Control the timing and location of development by tying the pace of development to the provision efthat public facilities. infrastructure and services' onform to the city's threshold standards,and to meet the goals and objectives of the @Growth mManagement pProgram; 9. Promote orderly revitalization and redevelopment of older portions of the city, including the Urban Core and the commercial corridors: v 910. Provide that the air quality of the city of Chula Vista is maintainedreonsistent with applicable standardsi.,,,,F,ves r 9FR . ,StiRg .,di ,,�• opo,A le that the Gity of Chula V*�t� -� 911. Require develop"mentao-conserves wa�r�o that an adequate supply 15t32 maintained to serve-the-needs of Current and fiitiircieSldeiitS. f BC. Findings. The city council of the city of ChulaiV915'hereby find z lth, safety, and welfare of the citizeRs of Chula M That repeAv- reGGMFReRdati,ARS that no n--yop-developmeRt sheuld E)r.GuF unless adequate publiG fa iNties a�e avail rnn °nt . cc e the w development,unless adequate publiG faGilities are available GoncurFeRtl ter4t with +. 44, !d Mest likely GGGur in areas of the Git�'WhjGh aFe deSigRated for highest development prionty. 1. New development creates incremental demands for public facilities. infrastructure and services providedy_ the city and other public agencies serving the area: 3 2015-02-17 Agenda -Packet ,,., Page 433 2. New development demand for public facilities infrastructure and services if not concurrently met with expansion of public facilities infrastructure and services, would result in facility and service shortages, including, but not limited to, streets schools, libraries and general governmental facilities. These shortages would be detrimental to the public health safety, and welfare of the citizens of Chula Vista; 3 The city has adopted and regularly updates facility master plans to ensure adequate infrastructure and services will be available to support the build-out demands of the adopted General Plan. 4. Since 1991 the cit has maintained a growth management ordinance to achieve the "r ose' outlined in "A" above and has adopted a variety of related fee and funding programs to ensure-that public im roJ ements keep pace with growth. 5 Chula Vista's adopted General Plan includes provisions reguiringzfacilities and services in advance of, or concurrent with,growth. 36. Prohibiting Rev, or limiting_development unless adequate`publicfecilities infrastructure-and services arer I r1M d'i available in advance of. or concurrently with. develo ment is consisten.— it the city's policy to provide housing Ael %. � opportunities for all economic segmentsseeters of the community, because sufficient opportunities for new housing continue to exist within the city,and this chapter does,not affect the number of houses which may be built. In addition, development of housing for low-,and moderate-income persons and families would most likely occur in areas of the city thatwhie#are designated for highest development priority. r `•r^= 47. Adoption of this chapter will!not adversely affect the regional welfare. By providing that adequate and safe public facilities, infrastructure anAervicesii reuea�eats will exist to serve all of the development in Chula 37' Vista, and becausemany ofthese facilities and improvements are used by persons residing in neighboring areas and cities, the public�healthf'�afety and welfare of the whole region is enhanced. -'aR-traff'G FRGRjtGF;Ag repeA prepared in 1989 feupd_ that iRterse4ens within areas e;:ReRt PFOgFaFR eRtitled "p . developmeAt as well as existing deve'GpMeRt) are operating in GGRfGFFRaRGe With the adopted threshold StandaFds� and that fUtUFe 'aFge SGale develepments plaRRed for the area eas!ef 1 9C)5 Will FequiFe the pFewision + er 9 aGC#la arils. 4 2015-02-17 Agenda Packet Page 434 68.This chapter will further the policies_, ^ als and ^h'°^t" es set forth above, and will help eliminate the publi^ a^e:rt,.sh^Ft^^^n ide^tified above by_ a)requiring identification for 4-all public facilities. infrastructure and services equired fer-as a result of development;:f jby-prohibiting or limiting development until adequate provisions for the public facilities infrastructure and services pF9Ye^R^^ts are made within the city, as herein provided,_and c)b"iving development priority to areas of the city where public facilities. infrastructure and iaPFevementsservices are already in place. (Ord. 2448 § 2, 1991) 9. The city has influence upon,but not control of. the actions of other public agencies mvolved:improviding services to the residents of_Chula_Vista. including school districts and water servic�e%Nqurveyors 19.09.020 Definitions. Whenever the following terms are used in this chapter, they shall havthe--meaning establis by this section unless from the context it is apparent that another meaning is.intended: " A. "Air Quality Improvement Plan (AQIP)means a proiect-s LIM i7-0 ality�1-4 ement Plan prepared and approved in accordance with CVMC 19.09.080. and Appendix A of the GrdL- h Management Program Im,olementation Manual. rl ` Or B. "Available facility and service capacity"shall be determined_'by the direstGF of Development Services Directo , using generally accepted planning standards and criteria, including the threshold standards set forth in this chapterest^lJ'iC;hQ h&;;;A Sp e facility service capacity shall be determined by subtracting from the total capacity for a,specific f5c ility service the demand of existing development plus the demand that will be created by approved cElopmenO BC. "Developed areas of the.citY-imeans those areas of a predominantly urban character where development has already_occurred and t �biic`facilities. infrastructure and services serving that development are in place. D."De elopment"`means any land use, building or other alteration of land and construction incident thereto. E. 6 "Develo mnt"Services „ " 's Develo Director or"Director means the Director of the city's meet Services p _ Y 1W Department or their designee. QF. "Discretionary planning approval" means any permit, entitlement or approval issued under the authority of the zoning and subdivisionthis titles of the Chula Vista Municipal Code(CVMC), and any legislative actions such as zone changes, gGeneral pelan amendments, &Sectional pPlanning aArea S( PA) tans or gGeneral dDevelopment pPian approvals or amendments. 5 2015-02-17 AgPnrin ParkPt Page 435 G "External public facilities and services" means the threshold standard topics that pertain to facilities and services provided from outside the city. such as schools, water and air quality. 9H. "Facilities" means any schools, public safety facilities, infrastructure, civic buildings, corporation yards,er--parklrecreational areas or structures providing for fire, libraries, traffic controls, streets and highways, including curbs, gutters and sidewalks, bridges, overcrossings, street interchanges,flood control or storm drain facilities, sewer facilities,water facilities, lighting facilities or other governmental services,I_required to be identified in a pPublic#Facilities€Finance pPlan. `'`° � I. "Facility Master Plan" means any adopted master plan for future facility needs for services associated with the Growth Management Program's threshold standards, including, but not limited to: sewer,_d_rainage,water, police.fire and emergency services, libraries and parks. Q. "Facility and service capacity" means the maximum amoutynt'of development which could take place prior to increasing the number or size of a facility or the level of service as'd`eterminedby,'applying the appropriate threshold standard. dn FK. "Growth mManagement pProgram Implementation Manual' means a plan prepared and approved according to CVMC 19.09.030 which establishes compliance"with the threshold standards, as provided in CVMC 19.09.040 and 19.09.050. ` L. "Moratorium" means buildin emits will not be issued for an area that has been identified as having a direct causal relationship to a s ecified threshold standard failure. City council must makespecific findings and follow specific procedures as provided in.-CVMC 19.09.07.0. GM. "Project" means the activity f ',which either an application for a sSectional pPlanning aArea(SPA)plan,er ` '. a Jenttative'r4►Map 7M a Conditional Use Permit CUP or a similar activity has been or is required to be ` . submitted and which mayfbe subject to discretionary approvals by the city t N. "Public facillities'finance plan (PFFP)" means a project specific pPublic fFacilities€Finance p !lan prepared and approved in accordance with CVMC 19.09.0580 through 19,09,130, and Appendix C_of the Growth Management Pro-gram Implementation Manual. JO. "SPA plan" means a sSectional pPlanning aArea plan. as prescribed in CVMC 19.48. 6 2015-02-17 Agenda Packet _, Page 436 P. "Statement of Concern" means an implementation measure the Growth Management Oversight Commission GMOC may issue in its annual report: 1 for an external public facilities and services threshold standard. to highlight what action the city can take in order to solve a specified issue and encourage further or additional inter-agency cooperation/coordination. There may also be a recommendation for the issuance of correspondence or a resolution by the city council to the external agency. if the situation so warrants. as determined by the GMOC: or 2)for a threshold standard that is currently failing or forecasted fo fail. and max include elements dealing with city management and organization. budget priorities. and4 ponsiveness to previous GMOC requests: or 3)in response to an overall or general quality of life conside ation i a pective to whether a particular threshold standard has been exceeded, or if it is a non-growth-related issue. It can offer a finding or make recommendations regarding city management. organization and budget priorities KQ. "Substantial compliance"means performance meeting the inters f;of the parties with respect to the obligations imposed pursuant to the PFFP. (Ord. 2448§2, 1991). R_." Threshold standards-)means.those certain standards identified in CVMC 19.09.040 and 19.09.050 specifying the faciliti and services r d to support the present and future needs of the city. S. "Transportation Monitoring Program(TMP)" means the technical analysis of traffic operation on all urban and �° suburban arterials with average weekday traffictvolumes greater than 20.000 vehicles per day. The TMP shall be based on the current Hi hway Capacity Manual. as may be amended from time-to-time- The technical analysis shall be conducted annually or-as directed by the city council in order to monitor actual traffic N operations and to predict future traffic levels:and related deterioration in the level of service. T. Water Conservation Pla�i;mea ns a proiect-specific water conservation plan prepared and approved in accordance with CVMC 19.09:080. and Appendix B of the Growth Management Program Implementation Mart ua .y 19.09.030.'Growth mManagement $Program Implementation Manual. A. &FRPFGYeFReRtl-; -;;FP- tG SUPPOF4 that develapment, the Gil�y GGUnGi' shall adopt, by Feselwtieq, a gFGw!h tti 7 2015-02-1? Page 437 The city council shall adopt, by resolution a Growth Management Program Implementation Manual that specifies how the policies and threshold standards set forth in this chapter are to be implemented, and, in so doing, assure that new development does not occur unless public facilities, infrastructure and services consistent with the threshold standards are available in advance of, or concurrently with. development. B.The gGrowth,wManagement pProgram Implementation Manual wi 4shall incorporate an 'interpret the threshold standards as set forth in this chapter . In C. The gGrowth mManagement pProgram Implementation Manual w�llshall incorporate,.by reference; 19.09.040 ^..alit., of life tThreshold sStandards for Cit Facilities and Services. Threshold standards for city facilities and services are those under the direct control of the city. and apply to eight public facility and services topics. including: Drainage: Fire and Emergency Services: Fiscal: Libraries: Parks and Recreation: Police: Sewer: and Traffic. In order to provide that public facilities and services, government and other utility services, and improvements that are adequate to meet present and future needs of the city, the city council hereby adopts quality life threshold standards for each facility or improvement listed below: = A. Police. ' Goal: To maintain oand improve the current level of police:r e in the city of Chula Vista. Objective: Ensure that Police staff,is adequately equip eaedd t and4rained'19-le r^'r ^r^ ^d^^ ^'^ to provide police service at the desired level throughout the city. AN Threshold Standards: Y, ' 1. Priority 1 —Emergency Calls'Response. Property equipped and staffed police units shall respond to at least 81% perseR of"Priority IC4iee7 emergent calls within seue 7•minutes 30 seconds and shall maintain an average response time of 6 minutes or less forA II _"Priority 1 calls Sae"emer9essy^^"r ^f 5 5 miRWeS ^r Iess(measured annually). 2. Phodt 2—Ur ent Calks. Pro erl a ui ed and staff olive units shall res and to all Priori 2 calls within 12 minutes or less(measu ed'annuilly).Respond to 57 PeFGeRt of"Priority Two urgent calls withinseye minut,.tn and m nta A � o time to all "PAOrity T-WG"nollc of 7 F. min.�ti nr lacr es -+ -. -+n Al rnr�nr . 'Priority e fife threatening calls;felony in progress'probability of injry(crime or accident):robbery or panic alarms:urgent cdv&calls,from officers.Response:Immediate response by two officers from any source or assignment,immediate response by paramedicslfirejf injuries are believed to have occurred. 2Priodty 2-``Urgent C611s are misdemeanor in progress:possibility of injury.serious no-routine calls(domestic violence or other disturbances«nth potential for violence):burglar atarms. Response:Immediate response by one or more officers from Gear units or those on inteFru�tible.activides(traffic.field interviews.etc.) Note: For grow management purposes. response time includes dispatch and travel time to the building or site address, otherwise referred to as"received to arrive." Implementation Measures: 1. Should the GMOC determine that the Priori 1 —Emergency Calls Tthreshold Sstandard is not being satisfiedmet due to growth impacts, then the Ccity Ccouncil s-49should, within 60 days of the GMOC's report, 9 2015-02-17 Agenda Packet Page 439 i schedule and hold a public hearing to., the p Fpose of a)consider adopting a moratorium on the issuance of new building permits; or b)adopt other actions sufficient to rectify the deficiency0es).base-d o-In Pill .,f the frADWin^ n,;4onn 7'1 That n ITIGF2tGF!UM YideS mi4ina4'n oncl Iro_4n . impa niz i GUS PP F :x . 2. Should the GMOC determine that the Priority 2--Urgent Calls threshol&standard is not beinq` met, it* may issue a Statement of Concern in Its annual report. ° r B. Fire and Emergency Medical Services. ayvd ti Goal:—To maintain and improve the ug ality .z of fire'protection and emergency medical services (EMS)in the Ccity of Chula Vista. Objective: Ensure that Fire/EMS staff are pop rly equipped;and`tra ned and fII, unded to provide the desired level of service throughout the Gcity. rq.�S'{�IIlLr Facility Master Plan: A minimum of every five years, on-whenever an update is needed, the city manager _shall bring a fire and emergency-medical services master plan to the city council for their consideration. The master plan shall include provisionsifor facilities. equipment and deployment. Threshold Standard: AIN ��' Emergency Response: Properlylegyipped and staffed fire and medical units shall respond to calls throughout the 6city within N-Air u�tes in at-least 80% of the cases(measured annually). Note, Far-growth management purposes, response time Includes dispatch, turnout and travel time to the Y15' building or site address. Implementation Measures: 1 Should the GMOC determine that the Thhreshold Sstandard is not being met due to growth impactssatisfied, and the Facility Master Plan milestone targets are not being met then the Ccity Gcouncll &4alishould,within 60 days of the GMOC's annual report, schedule and hold a public hearing to a for the ;wpese of gonslder adopting a moratorium on the aGGeptanGe of Rew}entative map applications, based 9 10 2015-02-17 Agpnfin Pnvkpt Page 440 of the fA-11A,h4 g :'ssuance of building permits. or b)adopt other actions sufficient to rectify the deficiency(ies). 2. The GMOC may issue a Statement of Concern in its annual report if it determines that the threshold standard: a)is not being met. but the reason is not due to growth impacts: or b)is not being met due to growth impacts. but the Facility Master Plan is meeting its milestone targets. in which case the Fire Department will address the adequacy of the Facility Master Plan. 2. That!he Fneraierium provides MitigatiOR measure to a spe c -Iv EW Should a FnerateFeum be established, !he tkne shall be used --ifiG MiUCZ;2ali 'tea �t�6 C. LibrarieSSeheets. Goal: To provide a high—quality, contemporary library ystem thatwhirh meets the varied needs of the community. �r Objective: Supplement the,existing libraries/5 by providing and AWI operating a�tieaal ibrarytfaciliti s fficient to meet the needs of new develo meat. ^ 'h^ ^-^^ ^^^'^{ interstate 995. As pFese fl, —.F-- Fent Library Master Plan (1999), this will eRtall GORStFUGO r whenever n u date i needed. the city manager Facility Master Plan_ A-mmimum of every five years. or a p s ,y q_ �3 _ s� shalltbrinq lit}rariesEmaster plan to city council for their consideration. The master plan shall define the V NN '� adequacy of library facilities and equipment and what constitutes adequate staffing and appropriate hours of o eration`an�d idea f library square footage needs consistent with the threshold standard at build-out Threshold Standard: PopulatioR Fatie: 590 SEJU@Fe feet(gFOSS) Gf adequately equipped and staffed libraFy fa G4+.. F 1,000 . „latie he city shall r^^cfn Gt 60,000 gFOSS square feet(GSP)of additional rh.a;J spat 9VGF the jURe 30, 2000, GSF total, in the area east of Inte–pstate A-05 by buPdDut. The GeAStFUGtiOR of said of fall below the city-wide ratio of 500 gross square feet(GSF) of library space. adequately equipped and staffed. e_ ro r 1.000 Population. 11 2015-02-17 Agenda Parket -- - Page 441 1 - Implementation Measures. 1. Should the GMOC determine that the Tthreshold Sstandard is not being metsatisfied or is expected to fail within three years4based on forecasted prowth and planned improvements), then the Ccity managerCeURG11 should shall formally adopt and fWAGI taGtiGs to present to city council, for their consideration, a plan of action, which includes timing benchmarks and a finance plan that will bring the library system into conformance. years., fees S r - ,rrH..t �� '�ti e"hy ,rv+ ' 2. The GMOC shall be provided with an annual report that documents the appropriate'sGhng levels, equipment and operating hours of library facilities over the past yea urrent year operation, and anticipated hours of operation. Should the GMOC determine that the libraries are not,adeguately staffed, equipped, or are not maintaining appropriate hours of operation, it may issue a"Statement of Concern in its annual report. E-D. Parks and Recreation Areas. iAll^ A Y.. Goal: To provide a diverse and flexible park system, ,:,system that meets both the active and passive recreational;needs of the ssresidents of Chula Vista. :°'.;r Objective: Provide public park:and recreational opportunities in a timely manner, implementing a 6-yea; facility master -wplah that describes the location, facility improvements, operational policies and funding program for proposed z public parks and recreation facilities. Facility Master Plan..-�. A,minimum of every five years, or whenever an update is needed, the city manager shall bring,a,parks-and recreation ,:l:, " �'.'.. A master plan to city council for their considerationL_and shall define terms, such as"appropriate f'- ilities." Supplemental information may come from the Recreation Department Strategic Plan and.'from spA% fic plans. i,� Threshold Standarrd_f _a,pulailan rata Three acres of neighborha public park land:with appropriate facilities, shall be provided per 1,000 residents for new development, citywideeast ef 1 805. Implementation Measures: 1 Should the GMOC determine that the Tthreshold Sstandards tsare not being metsat+-# , then the Ccity managerCe1Jtas14 s4a4shou3d present to the city council, for their consideration, a plan of action that 12 2015-02-17 Agenda Packet Page 442 includes timing benchmarks and a finance plan that will fnr.n^ll„adent and fund ta,.ti..r to hdng the parks and recreation system into conformance. within three years_ 2. If construction of needed new park and recreation facilities is not started within three years of the deficiency reported by the GMOC, then the Ccity (;GUnG 4 shaltmanager should,within 60 days of the GMOC's report, schedule and hold a public hearing far the n„rnnse nfto: a)consider adopting a moratorium on the acceptance of new building permits: or b)adopt other actions sufficient to rectify the deficiency(ies).tent��ti,ae men applinatinnc hared On all of the fellGYARrl GF#er a; That the m rator:ium it li..,ited to RA AFRR ..herein, el rel@tia Rshie r^ +he p—blem hqs been the established; aR4; , L A,F time shall be i sed to expeA.—"I" •• . ty 1=E. SewerWater. F Goal: To provide a healthful and sanitary sewer collection and disposal system for the residents of the Cdty of Chula Vista. consistent with the city's Wastewater Master Plan. Objective: Individual=pro�ects.will provide necessary improvements consistent with and-Ccity Eengineering 5sta-ads. Treatment capacity should be acquired in advance of demand. 4 Threshold Standar 1. Existing:and protected facility_Ssewage flows and volumes shall not exceed city engineering standards for the current �el and for budgeted improvements. as set forth in the 6Subdivision i;;Manual_^ '^^'ed hY^itY W .,he e .,.deal free, time to time 2. The city shall annually ensure adequate contracted capacity_in a-the San Diego Metropolitan Sewer Authority or other means sufficient to meet the projected deeds of development. .• Fights 13 2015-02-17 Agenda Packet Page 443 i department staff shall gather the eGessaF data. Implementation Measures: 1. The city engineerinq department shall annually gather and provide the following information to the GMOC.Should the GM0Q deteFmine that a petentially serious pFeblem exists with rprRprt to sewers, it ma- -2 SUGh a tato .,l" the City r„ ,-;l to Feq be rl' 4 rl + the erpnncihlo r,,,hl'r agency reufh fell r},., tv c�'isi.siv re npnrnpr'ntor`oc nnnsa hi,th Up ..PP vr.,,. .. � -P°-,-- -J rratagene� ^,.K,.p.,q ram a. Amount of current capacity in the Metropolitan Sewer System now used p or'corrimitted''and the status of Chula Vista's contracted share; „A`,•C '" Yo4 "V'rhY• A b. Ability of a#estedsewer facilities and Chula Vista's share of the Metro"'olitan Sewer System's capacity to absorb forecasted growth over the next five years;' �Y.4�•VV' a SVV 4`�'i1Vi iry'��yf•�' c. Evaluation of funding and site availability for budgeted and projected new facilities; and d. Other relevant information. lil� —c Ke% 2. Should the GMOC determin(�'that Motential problem exists with respect to sewer, it may issue a Statement of Concern in its annual report The growth --sponse letters shall be ided W the r_nnnr fee " �; its r 6--'�8 W8F its-•,., `�;�` I8..r HF. Drainage. Goal: To provide a safe and efficient storm water drainage system to protect residents and property in the Ccity of Chula Vista. Obiective- Individual projects will provide necessary improvements consistent with the nraiA@ge Master Plan(s)and current Scity€engineering Sstandards and local,state and federal regulations. Threshold Standards: 14 2015-02-17 Agenda Packet Page 444 1. Storm water flows and volumes shall not exceed city engineering standards and shall comply with current local, state and federal regulations. as et{^^h ir; the subd sieR r^ al adopted by Gity^,.,.nGil Resolution Na. 14 4 75 on F=ebFuaFy 23, 4 , as may be amended from time to time. 2. The GMOC shall annually review the performance of the city's storm drain system, with respect to the impacts of new development. to determine its ability to meet the goals and objectives for drainageabove. Implementation Measures: 1. Should the GMOC determine that the Tthreshold Sstandards+care not being A ith resilct to new development.then the Ccity managerGeuns+E shall should present to the city councsf�for theifo consideration. a plan of action that includes timing benchmarks and a4irfance plan that will` ;;Ad f--^ to bring the storm drain system into conformance. Construction or other actual solution shall be scheduled to commence within three years. OPN. 2. Should-the GMOC determine that the threshold standard is not bei' acne with res ect to existing development. it may issue a Statement of Concerninits annual report. 1G. Traffic. \�Y k Goals: 1_To provide and maintaWa safe•and efficient street system for all modes of transportation within the Gcity of Chula Vista. ` 2. i Jo accurately determine existing and projected level-,of serve(LOS)for motorists, using the Highway Capacity_M_anual_(HCM)performance �` t:�``� mess rement,hietho otogy. 3. T - thaNnique nature of urbanizing neighborhoods as destinations, and b establish a commensurafe%1 er et classification and LOS threshold that encourages alternative modes of transportation, W such as public transit. biking and walking. 4.To definemaintain a level of service value that represents a high quality of traffic flow under constrained operating conditions during peak periods of traffic activity. To establish a perforrnaRGe standard which is GG—ASir-54--R!With the RegiaRal GFOWth ManagemeRt StandaFds. 15 2015-02-17 Agenda Packet Page 445 TO stenGy on terrns of LOS FatiRgs betWeeR he previous-I rite methedelogy and Objectives. 1. Ensure timely provision of adequate local. mufti-modal circulation system capacity in response to planned growth:and malntainirlg acceptable levels of service (LOS). 1. § 2. Plan, design and construct new roadway segments and signalized intersections to ma ntainl"a'cceptable LOS standards at build-out of the General Plan's"Land Use and Transportation—QrGi latiep Element". 3 Plan, design and construct bicycle and pedestrian infrastructure improvements pursuanf,:fo the�most_current Bikeway Master Plan and Pedestrian Master Plan. Threshold Standards: �.�''4 J':;'•,,J. �°,;.�� 1. Arterial Level of Service (ALOS)for Non-Urban Streets- Stay-wkJ -Those-Traffic Monitoring Program (TMP) p,- roadway segments classified as other than UrbanlSfreets in the "Land Use and Transportation Element"of the city's General Plan shall Mmaintain LOS "C"or better as'measured'by observed average travel speed on all signalized arterial those segments; except, that during peak}i,oursl a-LOS "D can occur for no more than two J hours of the day.i= 2. Urban Street Level of S ceOSl: Those TMP roadway segments classified as Urban Streets in the "Land Use and Transportation Nement"4'of.the.city's General Plan shall maintain LOS "D"or better, as measured by observed wor• r'edicted:avers e travelspeed, except that during eak hours LOS "E" can occur for no more than two 1U ^t^ a Those ^^ �' . "i 3-Notes:to Standards. a1. Arterial sSegment_LOS measurements shall be for the average weekday peak hours, excluding seasonal and special circumstance variations. h I Irha and suburban .,.+.zrralare e-4Red as i.-fa e hinhw ys-havfng-signal spacing of less than Nye miloc with average weekday traffic olyrRes greater than 10,000 vehicles per day G. Arter'al segments &&im4�c 16 2015-02-17 Agenda Packet __ __- Page 446 AI_'PAh_P_F Qf rignalized inteFseGtions per mile as less than four. TheFe IS RE) parking and there is generally R n to abu#pn n e;ty R. Glass 11 ' I to abu44ing properties is limited abuttiRq n e4y is restktee x d2. The LOS measurement of arterial segments atnd freeway ramps 011�1 �e a.growth management consideration in situations where proposed developments have a.significant impact-at interchanges. e3. Circulation improvements should be implemented prior to anticipa#ed deterioration of LOS below established standards. �aerial P.The criteria for calculating arterial LOS and defning lengths and classifications shall follow the ` n-7 procedures detailed in the most recent Highway Capacity Manual(HCM)and shall be confirmed by the city's traffic engineer. v delays will be identified. The 3_6116�---ation by the field suNeys will be used te determiRe pessible h5. Level of service values for arterial segments shall be based on the HCM. Level ,f_c,o,,o",.ry C4ass4 Glass 2 Class 3 iA ?-35 ?-38 - 5 17 2015-02-1-;Agenda PaGkel Page 447 1 ' >129 >-24 X40 6 —92 >–Iz >�3 ID >47 >44 ?-8 E- >43 ?a 9 F- <-1,3 —1-8 4 va .:: Nlj ihY Implementation Measures: a 1. Should the GMOC determine that the Tthreshold Sstandard isare not being metsat+004111 due to rowth `impacts,then the Gcity Ccouncil shaflshould, within 60 days of the GMOC's`'report, schedule and hold a public �hl�AVf.k'k 9yjAIX hearing fey the porpose�#to consider adopting a�a moratorium on the acceptance of new building 'r ep rmiis+^,+,+,,,^ map r l, ,+, or b)other actions sufficient to eetify the defic ncy(ies).h^°°� µ following rife ;}yhr,, rvn7N �A"a1'"543. 11.qq,, F...1 2. The GMOC may issue a Statement of Conceni'in its annual report if it determines that the threshold y.lk vwl' standard will likely not be met within three years, due to rowth,im pacts. 3 The Department of Public Works shall annually report on progress made in implementing construction of facilities listed in the Bikewav Master Plan Pedestrian Master Plan the Transportation Development Impact Fee Program(TDIF), and the Weste n TDIF. % -- k5,= Y �' ' Wr' ye s in to the err ,Iar has tinnn_nc3shli, ` -� W RhA ratAFI- hp ectAbl*shed, the time shall be used to expeditiously prepare speGpf'G mitigation measures f r whiGh are intended te bring the condition into Gonformanre- Monitoring Methodology 1 IdentifV all Traffic Monitorin Pro_qram,(TM_Fj corridors and classify according to the latest Hi hwa Capacity Manual (HCM) methodology. Typically. a TMP roadway is four lanes with a volume of 16.500 trips and at least one mile and a half in length. If the Average Daily Trip(ADT)-based level of service 18 2015-02-17 Agenda Packet Page 448 is"C"or worse on a street segment located within a city TMP corridor. then the city shall consider conducting a TMP measurement. ADT volume data shall not be older than two years. 2. A TMP measurement shall consist of a two-hour AM peak period measurement. a two-hour mid-day period measurement. and a two-hour PM peak period measurement. 3. TMP measurement shall be conducted by following the current protocol in the latest adopted HCM. 4. Any speed collection and volume data methodology that utilizes the latest technology consistent with HCM protocol can be used in obtaining arterial LOS. subiect to approval by the` ii 's traffic engineer. KH. Fiscal. - Goal: To implementpe land uses and activities that aenerate an adequat evenue base that meets pond-te the economic needs of the residents andof4he -it of Chula Vis# h new proiec# development providing self-financing of capital projects. - Ob'ectives_ -` i 1. Monitor the impacts of arowth on the city of CYO a.Vis#a's_fiscal well-being. considerinq both operating and capital improvement costs and revenues. 2. Monitor and update the effectiveness of the developmentImoact fee programs. considering the appropriate and timely use of such funds. ' 3. Monitor and update the effectiveness of various public facility master plans to ensure adequate funding will be available to meet the demands,of growth=_ Use Fiscal Ybl G FaGility F';;@AG;Rg Plans (PF=FP&) W evaluate and plaR fop health zti�� Threshold Standards: 1. Fiscal Impact Analyses and Public Facilities Financing Plans, at the time they are adopted. shall ensure that new development offsets the cost of development. 19 2015-02-17Agenda Packet Page 449 E - 2. The city shall establish and maintain, at sufficient levels to ensure the timely delivery of infrastructure and services needed to support growth, consistent with the threshold standards, a Development Impact Fee,capital improvement funding. and other necessary funding programs or mechanisms. fee r8l3ek,"WhiGh Implementation Measures- 1. Use Fiscal Impact Analyses (FIA)and Public Facility Financing Plans'(PFFPs)to evaluate`46d ensure that new development requiring the preparation of a SPA pl an ore uivaient ursuant to CVMC¢19.09.040 and 19 48. contribute to the city's fiscal well-being by generating revenues an&^felated'economic activity that, at a minimum offset the cost of providing municipal services for ttie neWdevelo merit? ` 4N, =F•q'�l '�ylr 2. The GMOC shall be provided with an annual fiscal,impact report w#+c"t' t provides an evaluation of the impacts of growth on the city;4mAh in terms of ope atiosand capital,improvements. This report should evaluate actual growth over the previous 12-month period, as•'well as projected growth over the next "-+�-moo'R- 5-year period. �. r•• {y�y s 3 The GMOC shall be provided with an annual "development impact fee report,"which provides an analysis of development impact fees collected An expended over the previous 12-month period and prolected for expenditure for projects included'+tiithin the D-[F programs. ty- 19.09.050 Threshold Standards for External Facilities and Services. -. ....................................................... JA. Air.,, uality'and Climate Protection. .p 11Vb5:14.h `i��N Goal.. To'maintain°and improve the ambient air quality enjoyed by the^residents of Chula Vista, Obiectives. 1. v°^.,,.,,;-,;.,., that @,F quality In an effort to address the impacts of transportation and building-related energy use at both the regional and local level, the Ccity shall endeavor to implement applicable air quality improvement strategies and programs that meet or exceed those established 20 2015-02-17 AgPndn p,,acket Page 450 i through the currently adopted Regional Air Quality Strategy(RAQS), California's Global Warming Solutions Act of 2006(AB32). and the Chula Vista Climate Protection Program and the RAOSs subsequent imnlomon4,4in., FR2a e - 2. In an effort to maintain and improve ambient air quality. the city shall endeavor to locally mitigate any new stationary source development proiect's criteria air pollutant emissions that exceed local_air_quaiity standards. Threshold Standard: The city shall pursue a greenhouse gas emissions reduction target consistent withpoe city to c change and energy efficiency regulations in effect at the time of project application for SPA plans- or the following. subject to the discretion of the Development_Services Director a- Residential proiects of 50 or more residential dwelling its:ty s b. Commercial projects of 12 or more acres(or egu%EaNI .t square footagel: C. Industrial projects of 24 or more acres (or equivalent square footage); or r- d. Mixed use projects of 50 equivalent dw+relling units or greater rn c de ed tG f9Sto awF GlU@14Y i.»nrnve McAt nUFS cant to e � I A Nk- \ y IR addition, the—ARC-D Feport on overall regieRal and 19Gal aiF quality GonditieAs, the status Gf FegIGRal aiF \1ti Implementation Measures: 21 2015-02-17 Agenda Packet Page 451 1 In order to determine compliance with the air quality and climate protection threshold standard, city staff shall provide the GMOC with an annual report that evaluates the city's progress toward adherence with relevant federal. state, regional, and local air quality improvement strategies, regulations, and programs. The report shall include the following_ a. An overview and evaluation of local development projects approved during the prior year identifying «;, compliance levels and progress towards meeting the air quality and climate protection threshold standard. .gY,c�lM�'• fir""-ens b. An assessment of whether the greenhouse gas emissions reduction levels shouldYbeor based on updated state and federal standards. as applicable. + C. Additional information on non-development activities being undertaken by the city RU4'66ntnbute to meeting or furthering the air quality and climate protection_threshold,standard. a•,;:- � 2. After Tthe city shall prepares an annual evaluation report.fit`s''' provide a copy of thesa+d report to the aAir pPollution eControl dDistrict(APCD)forits responsere1r eW and ^^r^ ". The APCD> 44should provide the city with a report on overall regional and local air quality conditions, the status of regional air quality improvement implementation efforts under the rRegionPl pAir gQuality sStrategy and related federal and state programs, and the effect of those efforts/programs on the cityaotChula Vista and local planning and development activities. , 3. Should the GMOC determine that a deficiency exists with respect to any of the above air quality and climate protection-implementation measures, 4n-pr^11en e^+�°+either t#e4ocally,or regionally 4eve4,or both„it:may Z4.4issue a'fer /Statement of Concern''-w+thin its annual report. SUGh a the adoption of a resolUtinn raflartinm that r. n d Ur;.,re th r, czr (''rene f the "Statement” sha!4 cn he dipented try any ether recnenci hie Hvvp�cS Oe c � TT-orrr��—rcvpvrr.�rrnc' �yJ •k5',Y..Y. nirhlir�.`�1'onen nu line/.xi,tti'fn Rneu up to ne•e•i ere nn nrnnriate respense hie the o e('es) W B. Schoofs'-.. } Goal: To ensure that the Chula Vista G44y Elementary School District CV( ESD)and Sweetwater Union High School District SU(_ HSD)have the necessary school sites, infrastructure and funding mechanisms to meet the needs of students in new development areas in a timely manner. Obiective• Provide school district personnel with current development forecasts so that they may plan and implement school building and/or allocation programs in a timely manner. 22 2015-02-17 Agenda Parket Page 452 Facility Master Plan: The GMOC will request updates of the school districts'ffacility master plans or equivalent documents that define the schools' essential facility needs necessary to provide ade uate physical accommodation. Threshold Standard: The city shall annually provide the Chula Vista Elementary School District(CVESD)and the..Sweetwater Union High School District(SUHSD)with the city's annual 5-year residential growth two local Al his kts with a 12 to 18 month developm orecast and request an evaluation of their ability to;accom d`at recasted and GGRtillUiRg growth. both citywide and by subarea. T4e d,striGts'Replies fromt�chool districts should address the following: V 1. Amount of current classroom and"essential facilit as defined infNl' Master.PI JON aci now y" ( >ry p ty used or committed; MIyy � 2. Ability to absorb forecasted growth in affected facilities and identification of what facilities need to be upgraded or added over the next five ears; 3. Evaluation of funding and site availability for projected riew facilities identified; and 4. Other relevant information the school district(s)desire(s)to communicate to the city and the QGrowth mWnagement oOversight<GComrnission(GMOC). The @Fewth al-id . ' review. WA Implementation Measure: Should the GMOC determine that a poteMially seFi&uscg2acity problem exists with respect to physically accommodating students. either currently or within the next five years. seheetS, it may issueadept a formal statement of Concern"w4hin its annual report. The annual report shall be provided to both school districts. with follow-up. to assure appropriate responses ,-h a "Statement" requires he City c^„^,.IhuGID ;ides th° 23 2015-02-17 Agenda Packet Page 453 i oar'inq nn the GM09's r er+ to be direrter� te the respoRsible publiG ageRGY(S)With fgllew up io assure apprGpirdate response by that agenGy, C. Water Goal: To ensure that adequate supplies of potable and recycled quality i.,r,r.rr,r,rlate cr,r it+enr,or+ „&et water are available to the Ccity of Chula Vista. ter—Z Ob}ectives Q'', '•'' YV.�y l�r•Vl 1. Ensure that adequate storage, treatment and transmission facilities are constructed;ooncurrently;with fanned growth. " 2. Ensure that water quality standards requirements are metriot-eoobr a z!a''Auring growth and construction. 'r' •�von„ 3. Encourage water conservation and use of recycled water whe e.,appropriate.and�feasible. Threshold Standards: 1. Adequate water supply must be available to serve newjeveloprrti`ent. Therefore, developers shall provide N- Developer will request @Rd deliver to the Scity with a service;availability letter from the appropriate Wwater Ddistrict for each project. M 2. The Gcity shall annually'p�rov,ide th`e:San Diego County Water Authority, the Sweetwater Authority and the 1'7_to l R�nnt611evelepm t Otay Municipal Water District-ith.the city's=annual 5-Year resident al_growt_h_a � .,u ,ems V forecast and request that'tlieWprovide;an evaluation of their ability to accommodate the-forecasted and GORtIRUIR growth.',;. n1-.,t;Gts'-rReplies should address the following: W a. Wate riavai lability to the —city and Planning Area, considering both short-and long-term r perspectives. b. _'4`11dentify current and ro'ected demand and the Aamount of current capacity, including storage capacity, now used or committed. C, Ability of current and pro'ectedaffected facilities to absorb forecasted growth. d. Evaluation of funding and site availability for projected new facilities. 24 2015-02-17 Agenda Packet Page 454 e. Other relevant information the Ddistrict(s)desire to communicate to the Scity and the Growth Management Oversi ht Commission GMOC). Implementation Measure: Should the GMOC determine that a current or potentially-serieus problem exists with respect to water, it may acl,Wissue a formal " tatement of Concern"w#4in its annual report. Such a "Statement" re-p—es the Qty NMI.% racy. Rse by!hat � - R review. 19.09.060 Amendments and Supplemental Threshold;Standards. : . These standards may be�anded from time to time on ff %IIII approval by the city council. (Ord. 2860§§ 1, 2, 20,02;-:Ord. 2859 §.R1, 2002; Ord. 2748 §3, 1999; Ord. 2486 RRj § 1, 1991; Ord. 2448§ 2, 1991). Y 19.09.070 Moratorium on Building Permits Allowed A. Imposing Temporary Limits on'Bbildina Permits s � The city council may. by ordnance,imposee a limit on building permits for construction of residential and/or non- residential developmeff after akinq specific findings as to the health. safety and welfare concerns of continued develobment. asset forth in "B" below. +�k B. Findings Required Prior to adopting an ordinance imposing a limit on building permits, the city council shall consider making one or more of the following findings 25 2015-02-17 Agenda Packet Page 455 I ' 1 That continued development will make it unlikely for the intent of the Growth Management Program to be achieved as expressed by the "Growth Management Element" of the General Plan and this chapter. 2. That continued development will cause deterioration of the city's qualitV of life, and compromise the health safety and welfare in the city of Chula Vista. 3. That continued development will strain the city's fiscal resources an ability to deliver high qualit services to all its residents. C. Procedures for Implementing Limits on Building Permits. r,,4a If the city council makes the necessary required findings to impose a limit on building permits, then4it'shall adopt an ordinance that specifies; ,;�..•.,,,,,, 1. Area where the moratorium applies 2. Duration of the moratorium (when it begins and ends); 3. AnV exemptions or exceptions or conditions. These shall be consistent with the overall objectives of the city action and broader land use policy. Exemptions",codId_incl_ude "affordable" housing units units sold or rented at below market3'rates,,to meet the cit 's Housing Element requirements). Exceptions might include units that have beern,allocgqated as part of a separate agreement(e.g., a development agreement): 4. Any conditions that would allow the moratorium to be lifted prematurely; and N/ 5. How the buildi Permits shall be allocated. 19.09.0580 Requirement,for,xp !u@tq acili ties fFinance pPlans (PFFP), aAir gguality Um ro�ement Plan a d vitWater sConservation Plans. T... P...................... .�.._......... .� �......._ �.__...- --.�,..............................................��... - - A. Public Facilities Financi g Plans`$ No application for-are ._.,plan, or, if an SPA plan is not required, no application for a Jentative Mmap, shall be deemed.complete"or accepted for review unless: 1. It is accompanied by a PFFP which has been approved by the city; or 2. A PFFP wh+sh.that includes the project,has already been initiated; or 3. The applicant initiates the preparation of a PFFP. 26 2015-02-17 Agenda Packet Page 456 i The PFFP may be waived by the city council upon a showing that there are no public serviGe,Facilities, infrastructure and serviced er phases needs warranting the preparation of an PFFP. B.Air Quality Improvement Plans. No application for an SPA plan, or, if an SPA plan is not required, no application for a tTentative mMap, shall be deemed complete or accepted for review unless-. 1. It is accompanied by an aAir gQuality ilmprovement pPian whirhthat has been approved by the city; or 2. An aAir gQuality ilmprovement pPian whis 1hat includes the project. has already been�ANfated; or 3.The applicant initiates the preparation of an aA_ir qguality ilmprovement p_ such form mor \' \\W containing such information, including maps, drawings, diagrams, etc., as the city Development Services Directorp, ^^��shall require. C.Water Conservation Plans. No application for an SPA planif an SPA plan is;Pot required, no application for a tTentative rnMap, shall be deemed complete or accepted for review unless 1. It is accompanied by a wWater sConservation; Plan whishthat has been approved by the city; or ft 2. A wWater sConservation pPian,w#iG hthat includes th pr;ect,has already been initiated; or 3. The applicant initiates the preparation of:a'wWater sConservation pPlan in such form and/or containing such information, including maps, drawings, diagrams, etc., as the city Development Services Rirecto � shal9:re �e. D. No SPA plan, nor any entative subdivisierMap, shall be approved, or deemed approved,without an .;� `� .tip •'�� approved PFFP, an:approved aAir�'.5Quality ilmprovement pPlan and an approved wWater sConservatiorn pPlan.£To'provide consistency and implementation of said plans, the city council may impose any condition to the a "I,\% „�,�;,;�;^ m pproval of aaPA p`!an or tentative mMap necessary to implement the PFFP, the aAir gQuality Elmprove lnt pPian, the wWater sconservation pPian, the gQrowth mManagement pProgram, or the master fPacilityNjsster pPlans. may. E. No fFinal mMap shall be approved until all the conditions of the PFFP, the Air Quality Improvement Plan and the wWater sConservation pPian ave been met, or the project applicant has provided adequate security to the city that said plans will be implemented. 27 2015-02-17 Agandn PnvkPt Page 457 i F. No other discretionary planning approvals shall be granted unless the city council finds that the project is consistent with an approved PFFP, an aAir gQuality ilmprovement pPlan, and a wWater cConservation pPlan. G. No building permit shall be issued unless the permit is consistent with any applicable PFFP, the aAir gQuality ilmprovement pPlan and the wWater sConservation pPlan and all applicable fees, including, but not limited to, development impact fees, traffic impact fees, drainage fees, school fees, park fees, sewer fees, water fees, or other development fees adopted by the city council, have first been paid oprovision for their s� payment has been made to the satisfaction of the city council. H. No development shall occur in a PFFP area if the demand for any public facilitiBrtfrastructure and L services exceeds capacity and it is not feasible to increase capacity prior to completion of;development unless I the means, schedule and financing for increasing the capacity i-sare established through the."- of a 5 binding agreement providing for installation and maintenance of such facilit es:or,improvements in advance of the city's phasing schedule. (Ord. 2794, 1999; Ord. 2448 §2,x1991). a, 19.09.0&90 Public #Facilities #Finance PPlan (PFFP) .. .................�..... ....................... _....._...-- ............... . ................... A. The required contents of a Public Facilities FlnanN' Plan A-(PFFP)are outlined in Appendix C_of the city's Growth Management Program Implementation Manual, as,ma be amended from time to time.-shall certain a GGFPplete de pt,n of the ed development nrneani nnm arl �rithin #h rvr.�crrn-r-n-r� as it relates to the growth GifiG faGility master plans and the threshold standards. 13, The RF=FP --phs, tables, and narrative text and shall be based 61PGR the general plall and Z19F)iRg 2- all the g;ewth management pFegram within the area. F=F=P shall be established by the city at the time an SPA plan er tentativ :%2 Thp boundaries he and- future need fai;faGilities.The PPGjeGt 10.411 GOrrelate the proposed development projed with .sting @Rd f,,t Fe r eyeleppAnn+ n ed for the area Of im aGt tG provided&rtr=r GGIR tlMely iRStallatian of tenth GM Site and Off Site faGili+ie and r ntr required by+hadeavelnn tin 1 Serv'Ge areas or drainage n sewer basins which ranrn the n ct_ v 28 2015-02-17 Agenda Packet ____ _ Page 458 7 Cv#nn# !n..,NGh f2nilifinr n mnrn.,cmcn#r a jR plane n available; 3. Ownership of prGpeFty; t, Cnonial riirlrin# eor.nro territories: QVMG 19 12 070 'IW ff�'. As irrvrrv� 2 Fir .n CP 3. SGhG91Sj it I 'hr-,ri tnr xy� �—�ivrarcT - t-. Ra*s and rer•ro n#inn Ith- 11. Gerr.anon. apds - 29 2015-02-17 Agenda Racket Page 459 I ' F. The PC1=P shall q lxrrl r.-.rrl 4o each fadlihr and sr,r..Ge lir+rvrl in SUb%nlinn 1 I ist of Canilifeo late d ! iRdividwal de elnnm "-r-rt-NFujaeGtE;W thin the a s �,nr ar^h far iitit_anrl EATS sh element i ubs Gtien /CL of this oes4dnn as the pertain to Gibe fis-Aal���r.e`rvsiFi idihe The a =_ t ,�xy�rt shall be able 4n irdnnLfi e@ rl estimate initial and FeGu rr'nglifn nIn s+s F:.r'tho aho.xa alamen4s shall addFe6-thP-. AP-P-01 fGr and sh-11 propose '-pa-FA-J, plan for faGilities and as ^� .r Pm irn.11 4iy ��:iiY r• �-2 .: boundaFy,aiAq Ht ..d sr. proposals for fuRding existing, de-li0e.—Ges required k"�0_' Gt PF;GF tO the phasing srhedule set forth 'R the gFowih managepne.r, ;Rduded. it must be shown kha d Y lov, %'N _F9 a4mnrnx.ements shall beassessed and mitigalion pr­,.. .ty GounGd�. 4_ ro -rtiu��;rf 3. Phas! to nhacng nnl'n}tas' "!fnrlh in the growth MaRaay.^-rraeRt Pro anrd the threshold stanrdarrds t 4''y ��`i'i`"`.�1eiY.sthir•hnciahl'she`s fhn_+rminn fnr'nstal} pfbjZ-Gt. mhA,;inA 5Ghedule shall ensure that development Of E)Re aFea Will ROt utilize more ai+ iy Md ' fir within than n}e(d sanrnn area of a �z•=5 ys^ phasing SGhed Ile shall i G1 1de ahe.d le of rde elorhr.ient Within tha area anrd n oh fln irden+'fix periods where the rdemand for_facili_tias nrd i nts eel the nnnanifix aarl May Fey a CGAS4AlQAGY With phasing SGhed'xle-the PFS�_FAY'St ado RStFate to the nit.x'S 5a4isfh84inn how faG11}ins r fed 30 2015-02-17 Agenda Packet Page 460 aRA e� the plan @Fea, The plan shall identify those facilities and SeWiGeS WhiGh WG6;ld-GM_Ry;se be-providedd ass E �_ l.� /^.! ame�, etheMhaFF the pi;oleGt, the phasing plan shall id... __,er-pFopeF#eg and the PFF .A_- �z G. The PPF=P shall establish the pmpeFlienate shaF of the G of facilities and seRAGeS in the gFewth a ACCT- -�2 aFea. - with the early GGnStPJGIiOn Of said faGillity. No repayment will! be made to the developeF foF the funds provide 31 2015-02-17 Agenda Packet Page 461 i t-Assessment rGanstrurGlAd above the standards established by the regpeGtive faGility master plan oF stand@FdG ipRPGE;ed @F, �e,elnnmen+ The report shall iRG1 de pn aRalysis of the Project IMP-AGM f-)A rchee—1 d16V'GtS and water agenGies as well as the !:,:-- 4`�,W,� y 3 �x and building may require !he appliGaRt te pFGvide the Gity with an updated fisG@l impa-1 the rde,�elnnrmm{fit of+ha of d_nrninr±tsh411'he GeRditigRed to provide funding for periods wheFe expenditures exGee-,,11,9 R w e der reve }•rr' xe `jam a x+stir stand— A, P s Wl51 . emu�, �..�•.« 19.09.9-7100 Public Facilities Finance AP , an PFFP ........................................................._ Pre.r.,,a ................. A. A PFFP, an a.Air gQuality{Improvement pPlan, and a wWater,sConservation pPlan may be processed concurrently with the SPA plan or tTenlalive f;Wap. 14 B.B. A PFFP may be initiated;by f6h,an application with the d#eGtGF-ef Development Services Directorpla� and building. The applicant-,-shaW aylasdeposit at the time any application for a PFFP is accepted. C. A PFFP for a project'sh'all,,be prepared by the city, or a consultant selected by the city, according to the NUS procedures established'by this cliapter. D. Thecost of PFFP°preparation shall be advanced to the city by the applicant and any participating owner or ownersiprior to PFFP preparation. (Ord. 2790, 1999; Ord. 2448 §2, 1991). 19.09.9 10P-ublic #Facilities #Finance Plan PFFP Review. ... ....... ..�...__ _._..__._._�.._..._ _...._............... - _,. .,�.....�,,.,............. A. PFFPs shall be reviewed according to the following procedure: 1. A completed PFFP complying with this chapter, and accompanied by a processing fee in an amount established by city council resolution, may be submitted to the direEter-o#-Development Services Director for processing. _If the di-Fester-of-Development Services DirectorplanRiRg and b ild'Rg determines that the plan complies with the provisions of this chapter, the dDirector shall accept the PFFP for 32 2015-02-17 Agenda Racket - Page 462 review. _Once the PFFP has been reviewed and complies with the provisions of this chapter, it shall be set for public hearing before the planning commission together with the accompanying development plan. 2. The hearing shall be noticed according to the provisions of CVMC 19.12.070. A staff report containing recommendations on the PFFP shall be prepared and furnished to the public, the applicant, and the planning commission prior to the hearing. 3. The planning commission shall hear and consider the application and shall by resoluti prepare 1 recommendations and findings for the city council. The action of the commissimshall be filed with"tfie city clerk, and a copy shall be mailed to the applicant. N2�%rloyf 4.When the planning commission action is filed with the city cleric, the clerk shall set the matter,for public hearing before the city council. The hearing shall be noticed according to the.p-r�ovisions of CVMC 19.12.070. 5. The city council shall hear the matter, and after considering the,ffindings and ommendations of the planning commission, may approve, conditionally approve, or deny th&plans. The city council may include in the resolution adopting the PFFP any fees or facilities improvement requirements provided for in city - N ordinances in order to implement the gGrowth mManagement pProgam, the master facility master plans and the PFFP. 6, A PFFP may be amended following the same procedures for the original adoption. (Ord. 2790, 1999; Ord. 2448§2, 1991). -' t 19.09.9912_0 Public #Facilities #Finance pE! n PFFP) ilmplementation. A. The sits aRaget Deve" t a en S�ices Director shall moniior the devel.pmen+ +„a+„feF eaGhshall ensure that PFFPs are preaared f wall SPA plans and Tentative Maps. or equivalent projects pursuant to CVMC 19.48 , B. In the event that the lily GeUasifDevelopment Services Director or his designee finds that the project is not in substantial compliance with the PFFP as modified or amended, the developer s4rAmay be deemed to be in default and RG further continued issuance of building or development permits shall be issued and developMe^' ,hall may be affected. (Ord. 2448 § 2, 1991). 19.09.1030 Public #Facilities #Finance pPlan PFFP aAmendment. 33 2015-02-17 AgeUda Packet _ Page 463 i A. Adoption of a PFFP does not establish any entitlement or right to any particular general plan or zoning designation or any particular development proposal. he pliGaRt at the 4imo 'f r s'deFc the fission annual r perF 6B. If the ^;t,,manage r Development Services Director, pursuant to CVMC 19.09.110 determines that facilities or improvements within a PFFP are inadequate to accommodate any further development within that area, then development shall cease or be metered until a remedy is implementedthe of FePGFt the defiGieAGY 10 the city GOURGIL If the s+ty SaUns+IDevelopment Services Qire`ctor determines that such -V events or changed circumstances adversely affect the health, safety or welfare of the cit�y,the city may require the amendment, modification, suspension, or termination (hereinafter,change")of an approved PFFP. If the city requires such change, the city shall (1)give notice to applicant or owne of,{a}theecity's intended action to change the PFFP, and (b)the reasons and factual basis for the city's determination! (2)give notice to the applicant or owner, at least 30 days prior to the hearing date, of the time and place of the hearing; and(3) hold a city council hearing on the determination, at which.,hearing the applicant-be owner shall have the right to present WLtnesses, reports, and oral and written testimony. _Prior ta;approving any change, the city shall find that(i)the circums`-lances were unknown or that the circumstances have changed; and (ii)the health, safety or Vii'- welfare of the community requires the change of the PFFP.:?This provision shall neither limit nor expand the rights of liabilities of either of the parties with resp ct to the PFFP or the development of the property. `.1 . If, after notice and hearing, the;eounc•�� Rti1 il determines that a deficiency exists, then no further building or development permits shall be issued withih',M affected area,and development shall cease until an amendment to the applicable: FFP mitigate eM s the deficiency is approved by the city council. DC. The;city;council,,may initiate an amendment to any PFFP at any time if, in its discretion, it determines that an amendment istnecessary to provide adequate facilities and improvements and subsequent permits will be conditioned.on conformance. (Ord. 2448 § 2, 1991)- 'i% 19.09.1440 Exceptions and eExclusions_ A. Exceptions. Nothing in this chapter shall alter or amend the terms and con6tions of any development agreement entered 'into between the city and a developer. 34 2015-02-17 Agenda Packet Page 464 Building Permits for Approved Projects. BUildiRg peFFRitS wil! be issued f9F PFGjeGtS fGF WhiGh 4 FeqU4ed development peFPnits were issued OF appFOVed OR OF bef[)Fe the 6ffeGtiV9 elate ef the geneFal plan Up4ate adepted july 11, 1989, and UPOR payment of all FequiFed fees; eXG8pt, that PFGj9GtG With SPA PlaAS OF teRtat!Ve nat be issued building peFmits until an air quality improvemen%PIaR and a water Gensepzation plan has been apprGved by the Gily GOURCil. Nothing in this sUbSeGk)R shall alter or aMe.Ad- thP- t;-Ir;:PS @Ad GGAClitiQRS Of an development agreement enteFed into betWeeR the Gity and a develop . r L4- I preparation of a PFFP, air qU214Y iml;FeveMeRt IN GB. Exclusions. Development projects which consist o facilities or structures constructed by a city,county, special district, state, or federal government or any agency,-.department, or subsidiary thereof for governmental purposes are excluded from the provisions of this chapter. S the extent that the city has authority to regulate such development projects, such projects shall not be exempt. For example. any private development occurring on land leased from a pu�h�lic agency would not be exempt. This exclusion shall not apply to development projects to whichterest tax would be applicable. (Ord. 2448§2, 1991). 19.09.1250 Extensib of•pPnor�a Tprovals. After approval of amapplicable PFFP for a development project, an extension of the expiration date of a tentative hmMap may only be granted if the project is in conformance with the PFFP and the 3! rowth•mManagement pprogram. The extension may be conditioned on such matters as the city deems V\ 4mappropriate or necessary to make the Tentative Map conform to the PFFP and the Growth Managemen `Q41V Program, including, but not limited to, requiring the developer to submit any information. studies. plans and diagrams to show compliance with the applicable PFFP^ NiG faGiNtieS f!RaRre ^' (Ord. 2448 §2, 1991). 19.09.1360 Obligation to pPay#Fees or ilnstall #Facili#ies f qutrec3 by Any pother 1Law. 35 2015mUmll Agenda Parket Page 465 I ' Nothing in this chapter shall be construed as relieving a builder, developer or subdivider from any requirement to provide public facilities, to dedicate property or to pay fees,which requirement is imposed pursuant to this title or pursuant to any city council policy. (Ord. 2448 §2, 1991). 19.09..1740 Implementing- e1�esProcedures.-11 The city council may adopt any proceduresquidelines it deems necessary to implement this chapter, including procedures for administering the"Growth mmanagement pProgram or master facility.rrias er plans. (Ord. 2448§2, 1991). L - 19.09.1850 Council aActions, #Fees, nNotice. � � .........-.......... A S� A.Whenever this chapter requires or permits an action or decision of`t}he,city council, that action or decision shall be accomplished by resolution and/or ordinance, as appropriate 4P. B. The city council shall establish application and processing fees�for the submission and processing of pPublic fFacilities iFinancing pP€ans PFFPs . ';n C. Whenever written notice is required to be giverQo•pkop\�LLerty owners under this chapter, the notice shall be mailed by first class mail to the owners shown on the last'equalized'assessment roll. (Ord. 2448 §2, 1991). 19.09.1690 Severability. _........... .. ............. .......................................-........................ fiE If any section, subsection,.sentenceKclause or phrase of the ordinance codified in this chapter is for any reason held to be invalid or uncont tutio 1a b;the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance codified in this chapter.The city council declares that it would have passed the•ordinance codified in this chapter, and each section, subsection, \1 fi �ti ti A. �tik•, sentence, clause,and phrase thereof, irrespective of the fact that any part thereof be declared invalid or unconstituti6nal,(Ord�,2448 §'2, 1991). 19.092D0 Facility Master pPlans ,,. ................._« ... ....-...----------------------------... The city shall binfa n a series of facility master plans, as may be amended from time to time, for infrastructure and services throughout the city that regard the threshold standards in this chapter, including, but not limited to, police, fire and emergency services, libraries, parks and recreation, wastewater, drainage and circulation. In anticipation of service demands. these master plans shall contain an analysis of existing_facilities,existing and projected demand, and proposed maintenance and capital improvement projects. They shall also identify_ financing plans to accomplish identified improvements. 36 2015-02-17 Agenda Parket Page 466 i A, RE)ke: "A MaSteF Plan foF the Chula Vista GMG GeRteF So!ving City SpaGe Needs ThFough Yew 2910," dated May 8 1080 C-:- Sweetwater Union High SGhGGI DiStFiGt-SWeetwateF Union High SGheGl Q'St�Gt LGRg Ra� r6N F Sewe Fr "City of Chula Vista 1A!-,nsiee„w_at4F Master Plan," dated my 10 1080 � �.x'` . , ;:6 �� aF 2019 ppq 30, 1987. F. Labraries: -Ghyla Vista PubliG Library Master RaR. Facility Planpin�� P.yp d-m n the, nrLn c-fnr FeGreation elemem!dated july, !990, se c;(Phase 11). qualityrnaintenanG s� C.� n- :� Nome- 37 2015-02-17 Agenda Packet Page 467 ATTACHMENT 3 —Accepted Edits Version Chapter 19.09 GROWTH MANAGEMENT Sections: 19.09.010 Purpose/Intent, Policies and Findings. 19.09.020 Definitions. 19.09.030 Growth Management Program Implementation Manual. 19.09.040 Threshold Standards for City Facilities and Services. 19.09.050 Threshold Standards for External Facilities and Services. 19.09.060 Amendments and Supplemental Threshold Standards. 19.09.070 Moratorium on Building Permits Allowed. 19.09.080 Requirement for Public Facilities Finance Plans (PF P), Air Quality Improvement Plans and Water Conservation Plans 19.09.090 Public Facilities Finance Plan (PFFP)Contents. 19.09.100 Public Facilities Finance Plan (PFFP) Preparation. 19.09.110 Public Facilities Finance Plan (PFFP) Review. 19.09.120 Public Facilities Finance Plan (PFFP) Implementation. 19.09.130 Public Facilities Finance Plan (PFFP)Amendment. 19.09.140 Exceptions and Exclusions. 19.09.150 Extensions of Prior Approvals. 19.09.160 Obligation to Pay Fees or Install Facilities Required by Any Other Law. 19.09.170 Implementing Procedures. 19.09.180 Council Actions, Fees, Notice. 19.090.190 Severability. 19.090.200 Facility Master Plans. 19.09.010 Purpose/Intent, Policies and Findings. ....................................................................................................................................................................................................................................................................................................................................... A. Purpose/Intent The purpose and intent of this chapter is to: 1) Implement the policy framework established by Chula Vista's General Plan for Chula Vista's Growth Management Program; 2)Codify threshold standards designed to assure that, as new development occurs, public facilities, infrastructure and services will exist, or concurrently be provided, to meet the demands generated by new development, and service levels to existing residents will not be reduced; and 3) Establish administration and compliance mechanisms. 1 2015-02-17 Agenda Packet Page 468 ATTACHMENT 3 —Accepted Edits Version B. Policies It is the policy of the city of Chula Vista to: 1. Provide that public facilities, infrastructure and services meet the threshold standards set forth in this chapter, and are provided in advance of, or concurrent with, the demands created by new development; 2. Assure that individual development projects measure potential impacts upon public facilities, infrastructure and services, and provide a plan for funding improvements needed to meet the threshold standards set forth in this chapter; 3. Provide quality housing opportunities for all economic segments of the community; 4. Provide a balanced community with adequate commercial, industrial, recreational and open space areas to support the residential areas of the city; N J 5. Balance the regional housing needs against the public service needs of Chula Vista residents and available fiscal resources, environmental constraints, and quality of life considerations; 6. Provide that all development is consistent with the Chula Vista general plan; 7. Limit or prevent additional development if public facilities, infrastructure and services meeting the threshold standards set forth in this chapter are not provided in a timely, phased and logical manner, as required by the General Plan; X 'NW 8. Control the timing and location of development by tying the pace of development to the provision that public facilities, infrastructure and services conform to the city's threshold standards, and to meet the goals and objectives of the Growth Management Program; 9. Promote orderly revitalization and redevelopment of older portions of the city, including the Urban Core and the commercial corridors; 10. Provide that the air quality of the city of Chula Vista is maintained consistent with applicable standards; 11. Require development to conserve water so that an adequate supply is maintained to serve the needs of current and future residents. 2 2015-02-17 Agenda Packet Page 469 ATTACHMENT 3 —Accepted Edits Version C. Findings. The city council of the city of Chula Vista hereby finds: 1. New development creates incremental demands for public facilities, infrastructure and services provided by the city and other public agencies serving the area; 2. New development demand for public facilities, infrastructure and services, if not concurrently met with expansion of public facilities, infrastructure and services,would result in facility and service shortages, including, but not limited to, streets, schools, libraries and general governmental facilities. These shortages would be detrimental to the public health, safety, and welfare of the citizens of Chula Vista; 3. The city has adopted and regularly updates facility master plans to ensure adequate infrastructure and services will be available to support the build-out demands of the adopted General Plan. 4. Since 1991, the city has maintained a growth management ordinance to achieve the"Purpose"outlined in "A", above, and has adopted a variety of related fee and funding programs to ensure that public improvements keep pace with growth. 5. Chula Vista's adopted General Plan includes provisions requiring facilities and services in advance of, or concurrent with, growth. 6. Prohibiting or limiting development unless adequate public facilities, infrastructure and services are available in advance of, or concurrent with, development is consistent with the city's policy to provide housing opportunities for all economic segments of the community, because sufficient opportunities for new housing continue to exist within the city, and this chapter does not affect the number of houses which may be built. In addition, development of housing for low-and moderate-income persons and families would most likely occur in areas of the city that are designated for highest development priority. 7. Adoption of this chapter will not adversely affect the regional welfare. By providing that adequate and safe public facilities, infrastructure and services will exist to serve all of the development in Chula Vista, and because many of these facilities and improvements are used by persons residing in neighboring areas and cities, the public health, safety and welfare of the whole region is enhanced. 8. This chapter will further the policies set forth above by: a) requiring identification for all public facilities, infrastructure and services required as a result of development; b) prohibiting or limiting development until adequate provisions for the public facilities infrastructure and services are made within the city, as herein 3 2015-02-17 Agenda Packet Page 470 ATTACHMENT 3 —Accepted Edits Version provided; and c)giving development priority to areas of the city where public facilities, infrastructure and services are already in place. (Ord. 2448 §2, 1991) 9. The city has influence upon, but not control of, the actions of other public agencies involved in providing services to the residents of Chula Vista, including school districts and water service purveyors. 19.09.020 Definitions. ....................................................................................................................................................................................................................................................................................................................................... Whenever the following terms are used in this chapter, they shall have the meaning established by this section unless from the context it is apparent that another meaning is intended: & "'Irl A. "Air Quality Improvement Plan" (AQIP) means a project-specific Air Quality Improvement Plan prepared and approved in accordance with CVMC 19.09.080, and Appendix A of the Growth Management Program Implementation Manual. J10% %, B. "Available facility and service capacity"shall be determined by the Development Services Director, using generally accepted planning standards and criteria, including the threshold standards set forth in this chapter. Specific facility service capacity shall be determined by subtracting from the total capacity for a specific facility service the demand of existing development plus the demand that will be created by approved development. C. "Developed areas of the city" means those areas of a predominantly urban character where development has already occurred and public facilities, infrastructure and services serving that development are in place. D. "Development" means any land use, building or other alteration of land and construction incident thereto. E. "Development Services Director"or"Director" means the Director of the city's Development Services W Department or their designee. F. "Discretionary planning approval" means any permit, entitlement or approval issued under the authority of the zoning and subdivision titles of the Chula Vista Municipal Code (CVMC), and any legislative actions such as zone changes, General Plan amendments, Sectional Planning Area (SPA) plans or General Development Plan approvals or amendments. G. "External public facilities and services" means the threshold standard topics that pertain to facilities and services provided from outside the city, such as schools,water and air quality. H. "Facilities" means any schools, public safety facilities, infrastructure, civic buildings, corporation yards, park/recreational areas or structures providing for fire, libraries, traffic controls, streets and highways, including 4 2015-02-17 Agenda Packet Page 471 ATTACHMENT 3 —Accepted Edits Version curbs, gutters and sidewalks, bridges, overcrossings, street interchanges, flood control or storm drain facilities, sewer facilities, water facilities, lighting facilities or other governmental services, required to be identified in a Public Facilities Finance Plan. I. "Facility Master Plan" means any adopted master plan for future facility needs for services associated with the Growth Management Program's threshold standards, including, but not limited to: sewer, drainage,water, police, fire and emergency services, libraries and parks. J. "Facility and service capacity" means the maximum amount of development which could take place prior to increasing the number or size of a facility or the level of service as determined by applying the appropriate threshold standard. 'Y 4 K. "Growth Management Program Implementation Manual" means a plan prepared and approved according to CVMC 19.09.030,which establishes compliance with the threshold standards, as provided in CVMC 19.09.040 and 19.09.050. L. "Moratorium" means building permits will not be issued for an area that has been identified as having a direct causal relationship to a specified threshold standard failure. City council must make specific findings and follow specific procedures as provided in CVMC 19.09.070. ;V M. "Project" means the activity for which either an application for a Sectional Planning Area (SPA) plan, a Tentative Map (TM), a Conditional Use Permit(CUP), or a similar activity has been or is required to be submitted and which may be subject to discretionary approvals by the city. N. "Public facilities finance plan (PFFP)" means a project specific Public Facilities Finance Plan prepared and approved in accordance with CVMC 19.09.080 through 19.09.130, and Appendix C of the Growth Management Program Implementation Manual. O. "SPA plan" means a Sectional Planning Area plan, as prescribed in CVMC 19.48. P. "Statement of Concern" means an implementation measure the Growth Management Oversight Commission (GMOC) may issue in its annual report: 1)for an external public facilities and services threshold standard, to highlight what action the city can take in order to solve a specified issue and encourage further or additional inter-agency cooperation/coordination. There may also be a recommendation for the issuance of correspondence or a resolution by the city council to the external agency, if the situation so warrants, as determined by the GMOC; or 2)for a threshold standard that is currently failing or forecasted to fail, and may 5 2015-02-17 Agenda Packet Page 472 ATTACHMENT 3 —Accepted Edits Version include elements dealing with city management and organization, budget priorities, and responsiveness to previous GMOC requests; or 3) in response to an overall or general quality of life consideration, irrespective to whether a particular threshold standard has been exceeded, or if it is a non-growth-related issue. It can offer a finding or make recommendations regarding city management, organization and budget priorities. Q. "Substantial compliance" means performance meeting the intent of the parties with respect to the obligations imposed pursuant to the PFFP. (Ord. 2448 §2, 1991). R. "Threshold standards" means those certain standards identified in CVMC 19.09.040 and 19.09.050 specifying the facilities and services required to support the present and future needs of the city. S. "Transportation Monitoring Program (TMP)" means the technical analysis of traffic operation on all urban and suburban arterials with average weekday traffic volumes greater than 20,000 vehicles per day. The TMP shall be based on the current Highway Capacity Manual, as may be amended from time-to-time. The technical analysis shall be conducted annually or as directed by the city council in order to monitor actual traffic operations and to predict future traffic levels and related deterioration in the level of service. T. "Water Conservation Plan" means a project-specific water conservation plan prepared and approved in accordance with CVMC 19.09.080, and Appendix B of the Growth Management Program Implementation Manual. 19.09.030 Growth Management Program Implementation Manual. ....................................................................................................................................................................................................................................................................................................................................... A. The city council shall adopt, by resolution, a Growth Management Program Implementation Manual that specifies how the policies and threshold standards set forth in this chapter are to be implemented, and, in so doing, assure that new development does not occur unless public facilities, infrastructure and services consistent with the threshold standards are available in advance of, or concurrently with, development. B. The Growth Management Program Implementation Manual shall incorporate and interpret the threshold standards as set forth in this chapter. C.The Growth Management Program Implementation Manual shall incorporate, by reference, the adopted facility master plans prepared by certain city departments, and shall address air quality and fiscal issues. D.The Growth Management Program Implementation Manual shall provide procedures for implementing any limits on building permits established pursuant to CVMC 19.09.070, and address growth-related fiscal and economic issues. E. The Growth Management Program Implementation Manual shall define the contents of 6 2015-02-17 Agenda Packet Page 473 ATTACHMENT 3 —Accepted Edits Version Public Facilities Finance Plans (PFFPs)that are required for all development projects pursuant to CVMC 19.09.080. E. The city council shall appoint a Growth Management Oversight Commission (GMOC), and the GMOC shall annually prepare a report and, upon doing so, the GMOC shall submit such report to the planning commission for input and recommendation, and to the city council for their action. F. The city council should annually review and, by resolution, act upon the Growth Management Oversight Commission's annual report. k 14r� G.Amendments to the Growth Management Program Implementation Manual may be initiated by action of the planning commission or city council, or upon request of an applicant. The city council shall act on the requested application. (Ord. 2448 §2, 1991). 19.09.040 Threshold Standards for City Facilities n Services. Threshold standards for city facilities and services are those under the direct control of the city, and apply to eight public facility and services topics, including: Drainage; Fire and Emergency Services: Fiscal; Libraries; Parks and Recreation; Police; Sewer; and Traffic. NO ""Y In order to provide that public facilities and services, government and other utility services, and improvements that are adequate to meet present and future needs of the city, the city council hereby adopts threshold standards for each facility or improvement listed below: A. Police. Goal: To maintain and improve the�current level of police service in the city of Chula Vista. Objective: Ensure that Police staff is adequately equipped and trained to provide police service at the desired level throughout the city. Nkff Threshold Standards: 1. Priority 1 —Emergency Calls'. Properly equipped and staffed police units shall respond to at least 81% of Priority 1 calls within 7 minutes 30 seconds and shall maintain an average response time of 6 minutes or less for all Priority 1 calls (measured annually). 7 2015-02-17 Agenda Packet Page 474 ATTACHMENT 3 —Accepted Edits Version 2. Priority 2—Urgent Callsz. Properly equipped and staff police units shall respond to all Priority 2 calls within 12 minutes or less (measured annually). 'Priority 1 —Emergency Calls are life-threatening calls:felony in progress:probability of injury(crime or accident):robbery or panic alarms: urgent cover calls from officers. Response: Immediate response by two officers from any source or assignment,immediate response by paramedics/fire if injuries are believed to have occurred. 2Priority 2—Urgent Calls are misdemeanor in progress:possibility of injury;serious non-routine calls(domestic violence or other disturbances with potential for violence): burglar alarms. Response: Immediate response by one or more officers from clear units or those on interruptible activities(traffic,field interviews,etc.) Note: For growth management purposes, response time includes dispatch and travel time to the building or site address, otherwise referred to as "received to arrive." qL Implementation Measures: k�n' 1. Should the GMOC determine that the Priority 1 —Emergency Calls threshold standard is not being met due to growth impacts, then the city council should, within 60 days of the GMOC's report, schedule and hold a public hearing to: a)consider adopting a moratorium on the issuance of new building permits; or b) adopt other actions sufficient to rectify the deficiency(ies). 2. Should the GMOC determine that the Priority 2—Urgent Calls threshold standard is not being met, it may issue a Statement of Concern in its annual report. B. Fire and Emergency Medical Services. Goal: To maintain and improve the quality of fire protection and emergency medical services (EMS) in the city of Chula Vista. X NO Objective: Ensure that Fire/EMS staff are properly equipped and trained to provide the desired level of service throughout the city. Facility Master Plan: A minimum of every five years, or whenever an update is needed, the city manager shall bring a fire and emergency medical services master plan to the city council for their consideration. The master plan shall include provisions for facilities, equipment and deployment. Threshold Standard: Emergency Response: Properly equipped and staffed fire and medical units shall respond to calls throughout the city within 7 minutes in at least 80%of the cases (measured annually). Note: For growth management purposes, response time includes dispatch, turnout and travel time to the building or site address. 8 2015-02-17 Agenda Packet Page 475 ATTACHMENT 3 —Accepted Edits Version Implementation Measures: 1. Should the GMOC determine that the threshold standard is not being met due to growth impacts, and the Facility Master Plan milestone targets are not being met, then the city council should, within 60 days of the GMOC's annual report, schedule and hold a public hearing to a)consider adopting a moratorium on the issuance of building permits, or b)adopt other actions sufficient to rectify the deficiency(ies). 2. The GMOC may issue a Statement of Concern in its annual report if it determines that the threshold standard: a) is not being met, but the reason is not due to growth impacts; or b) is not being met due to growth impacts, but the Facility Master Plan is meeting its milestone targets, in which case the Fire Department will address the adequacy of the Facility Master Plan. C. Libraries. e)w4ka Goal: To provide a high-quality, contemporary library system that meets the varied needs of the community. Objective: Supplement existing libraries by providing and operating library facilities sufficient to meet the needs of new development. x " Facility Master Plan: A minimum of every five years, or whenever an update is needed, the city manager shall bring a libraries master plan to city council for their consideration. The master plan shall define the adequacy of library facilities and equipment and what constitutes adequate staffing and appropriate hours of operation, and identify library square footage needs consistent with the threshold standard at build-out. Threshold Standard: The city shall not fall below the citywide ratio of 500 gross square feet(GSF)of library space, adequately equipped and staffed, per 1,000 population. Implementation Mea s: ik 1. Should the GMOC determine that the threshold standard is not being met or is expected to fail within three years (based on forecasted growth and planned improvements), then the city manager should present to city council, for their consideration, a plan of action, which includes timing benchmarks and a finance plan that will bring the library system into conformance. 2. The GMOC shall be provided with an annual report that documents the appropriate staffing levels, equipment and operating hours of library facilities over the past year, current year operation, and anticipated hours of operation. Should the GMOC determine that the libraries are not adequately staffed, 9 2015-02-17 Agenda Packet Page 476 ATTACHMENT 3 —Accepted Edits Version equipped, or are not maintaining appropriate hours of operation, it may issue a Statement of Concern in its annual report. D. Parks and Recreation. Goal: To provide a diverse and flexible park system that meets both the active and passive recreational needs of the residents of Chula Vista. 41 Objective: Provide public park and recreational opportunities in a timely manner, implementing a facility master plan that describes the location, facility improvements, operational policies and funding program for proposed public parks and recreation facilities. x -X *w Facility Master Plan: A minimum of every five years, or whenever an update is needed, the city manager shall bring a parks and recreation master plan to city council for their consideration, and shall define terms, such as "appropriate facilities." Supplemental information may come from the Recreation Department Strategic Plan and from specific plans. '�Ny Threshold Standard: Three acres of public park land,with appropriate facilities, shall be provided per 1,000 1W residents for new development, citywide. Implementation Measures: 1. Should the GMOC determine that the threshold standard is not being met, then the city manager should present to the city council,for their consideration, a plan of action that includes timing benchmarks and a finance plan that will bring the parks and recreation system into conformance. 2. If construction of needed new park and recreation facilities is not started within three years of the deficiency reported by the GMOC, then the city manager should, within 60 days of the GMOC's report, schedule and hold a public hearing to: a)consider adopting a moratorium on the acceptance of new building permits; or b)adopt other actions sufficient to rectify the deficiency(ies). E. Sewer. Goal: To provide a healthful and sanitary sewer collection and disposal system for the residents of the city of Chula Vista, consistent with the city's Wastewater Master Plan. 10 2015-02-17 Agenda Packet Page 477 ATTACHMENT 3 —Accepted Edits Version Objective: Individual projects will provide necessary improvements consistent with city engineering standards. Treatment capacity should be acquired in advance of demand. Threshold Standards: 1. Existing and projected facility sewage flows and volumes shall not exceed city engineering standards for the current system and for budgeted improvements, as set forth in the Subdivision Manual. 2. The city shall annually ensure adequate contracted capacity in the San Diego Metropolit r Authority or other means sufficient to meet the projected needs of development. Implementation Measures: Oak 1. The city engineering department shall annually gather and provide the following information to the GMOC: a. Amount of current capacity in the Metropolitan Sewer System now used or committed and the status of Chula Vista's contracted share; '�Ny b. Ability of sewer facilities and Chula Vista's share of the Metropolitan Sewer System's capacity to CML. 1W absorb forecasted growth over the next five years; c. Evaluation of funding and site availability for budgeted and projected new facilities; and I d. Other relevant information. 2. Should the GMOC determine that a potential problem exists with respect to sewer, it may issue a Statement of Concern in its annual report. F. Dr ge. Goal: To provide a safe and efficient storm water drainage system to protect residents and property in the city of Chula Vista. Objective: Individual projects will provide necessary improvements consistent with current city engineering standards and local, state and federal regulations. 11 2015-02-17 Agenda Packet Page 478 ATTACHMENT 3 —Accepted Edits Version Threshold Standards: 1. Storm water flows and volumes shall not exceed city engineering standards and shall comply with current local, state and federal regulations, as may be amended from time to time. 2. The GMOC shall annually review the performance of the city's storm drain system, with respect to the impacts of new development, to determine its ability to meet the goal and objective for drainage. Implementation Measures: 1. Should the GMOC determine that the threshold standards are not being met,with respect to new development, then the city manager should present to the city council, for their consideration, a plan of action that includes timing benchmarks and a finance plan that will bring the storm drain system into conformance. Construction or other actual solution shall be scheduled to commence within three years. 2. Should the GMOC determine that the threshold standard is not being met, with respect to existing development, it may issue a Statement of Concern in its annual report.e G.Traffic. Goals: 1. To provide and maintain a safe and efficient street system for all modes of transportation within the city of Chula Vista. X 'NW 2. To accurately determine existing and projected levels of service (LOS)for motorists, using the Highway Capacity Manual (HCM) performance measurement methodology. 3. To recognize the unique nature of urbanizing neighborhoods as destinations, and to establish a commensurate street classification and LOS threshold that encourages alternative modes of transportation, such as public transit, biking and walking. 4. To maintain a level of service value that represents a high quality of traffic flow under constrained operating conditions during peak periods of traffic activity. 12 2015-02-17 Agenda Packet Page 479 ATTACHMENT 3 —Accepted Edits Version Objectives: 1. Ensure timely provision of adequate local, multi-modal circulation system capacity in response to planned growth, and maintain acceptable levels of service. 2. Plan, design and construct new roadway segments and signalized intersections to maintain acceptable LOS standards at build-out of the General Plan's"Land Use and Transportation Element". 3. Plan, design and construct bicycle and pedestrian infrastructure improvements pursuant ost current Bikeway Master Plan and Pedestrian Master Plan. Threshold Standards: 1. Arterial Level of Service (ALOS)for Non-Urban Streets: Those Traffic Monitoring Program (TMP) roadway segments classified as other than Urban Streets in the"Land Use and Transportation Element"of the city's General Plan shall maintain LOS"C"or better as measured by observed average travel speed on those segments; except, that during peak hours, LOS"D" can occur for no more than two hours of the day. 2. Urban Street Level of Service (ULOS): Those TMP roadway segments classified as Urban Streets in the "Land Use and Transportation Element"of the city's General Plan shall maintain LOS"D"or better, as measured by observed or predicted average travel speed, except that during peak hours, LOS "E" can occur for no more than two hours per day. Notes to Standards. 1. Arterial Segment: LOS measurements shall be for the average weekday peak hours, excluding seasonal and special circumstance variations. 2. Ohe LOS measurement of arterial segments at freeway ramps shall be a growth management consideration in situations where proposed developments have a significant impact at interchanges. 3. Circulation improvements should be implemented prior to anticipated deterioration of LOS below established standards. 4. The criteria for calculating arterial LOS and defining arterial lengths and classifications shall follow the procedures detailed in the most recent Highway Capacity Manual (HCM)and shall be confirmed by the city's traffic engineer. 13 2015-02-17 Agenda Packet Page 480 ATTACHMENT 3 —Accepted Edits Version 5. Level of service values for arterial segments shall be based on the HCM. Implementation Measures: 1. Should the GMOC determine that the threshold standard are not being met, due to growth impacts, then the city council should, within 60 days of the GMOC's report, schedule and hold a public hearing to consider adopting: a)a moratorium on the acceptance of new building permits, or b)other actions sufficient to rectify the deficiency(ies). 2. The GMOC may issue a Statement of Concern in its annual report if it determines that the thresh standard will likely not be met within three years, due to growth impacts. 3. The Department of Public Works shall annually report on progress made in implementing construction of facilities listed in the Bikeway Master Plan, Pedestrian Master Plan, the Transportation Development Impact Fee Program (TDIF), and the Western TDIF. Monitoring Methodology 1. Identify all Traffic Monitoring Program (TMP)corridors and classify according to the latest Highway Capacity Manual (HCM) methodology. Typically, a TMP roadway is four lanes with a volume of 16,500 trips and at least one mile and a half in length. If the Average Daily Trip (ADT)-based level of service is "C" or worse on a street segment located within a city TMP corridor, then the city shall consider conducting a TMP measurement. ADT volume data shall not be older than two years. 2. A TMP measurement shall consist of a two-hour AM peak period measurement, a two-hour mid-day period measurement, and a two-hour PM peak period measurement. 3. TMP measurement shall be conducted by following the current protocol in the latest adopted HCM. 4. Any speed collection and volume data methodology that utilizes the latest technology consistent with HCM protocol can be used in obtaining arterial LOS, subject to approval by the city's traffic engineer. H. Fiscal. Goal: To implement land uses and activities that generate an adequate tax and revenue base that meets the economic needs of the residents of the city of Chula Vista, with new project development providing self- financing of capital projects. 14 2015-02-17 Agenda Packet Page 481 ATTACHMENT 3 —Accepted Edits Version Objectives: 1. Monitor the impacts of growth on the city of Chula Vista's fiscal well-being, considering both operating and capital improvement costs and revenues. 2. Monitor and update the effectiveness of the development impact fee programs, considering the appropriate and timely use of such funds. 3. Monitor and update the effectiveness of various public facility master plans to ensur )nding will be available to meet the demands of growth. **Y V�l Threshold Standards: Oak 1. Fiscal Impact Analyses and Public Facilities Financing Plans, at the time they are adopted, shall ensure that new development offsets the cost of development. IN J 2. The city shall establish and maintain, at sufficient levels to ensure the timely delivery of infrastructure and services needed to support growth, consistent with the threshold standards, a Development Impact Fee, capital improvement funding, and other necessary funding programs or mechanisms. Implementation Measures: 1. Use Fiscal Impact Analyses (FIA)and Public Facility Financing Plans (PFFPs)to evaluate and ensure that new development requiring the preparation of a SPA plan, or equivalent, pursuant to CVMC 19.09.040 and 19.48, contribute to the city's fiscal well-being by generating revenues and related economic activity that, at a minimum, offset the cost of providing municipal services for the new development. 2. The GMOC shall be provided with an annual fiscal impact report that provides an evaluation of the impacts of growth on the city in terms of operations and capital improvements. This report should evaluate actual growth over the previous 12-month period, as well as projected growth over the next 5-year period. 3. The GMOC shall be provided with an annual "development impact fee report,"which provides an analysis of development impact fees collected and expended over the previous 12-month period and projected for expenditure for projects included within the DIF programs. 19.09.050 Threshold Standards for External Facilities and Services. ....................................................................................................................................................................................................................................................................................................................................... A. Air Quality and Climate Protection. 15 2015-02-17 Agenda Packet Page 482 ATTACHMENT 3 —Accepted Edits Version Goal: To maintain and improve the ambient air quality enjoyed by the residents of Chula Vista. Objectives: 1. In an effort to address the impacts of transportation and building-related energy use at both the regional and local level, the city shall endeavor to implement applicable air quality improvement strategies and programs that meet or exceed those established through the current adopted Regional Air Quality Strategy (RAQS), California's Global Warming Solutions Act of 2006 (AB32), and the Chula Vista Climate Protection Program. k _"'Irl 2. In an effort to maintain and improve ambient air quality, the city shall endeavor to locally mitigate any new stationary source development project's criteria air pollutant emissions that exceed local air quality standards. Threshold Standard: The city shall pursue a greenhouse gas emissions reduction target consistent with appropriate city climate change and energy efficiency regulations in effect at the time of project application for SPA plans or for the following, subject to the discretion of the Development Services Director: a. Residential projects of 50 or more residential dwelling units; b. Commercial projects of 12 or more acres (or equivalent square footage); C. Industrial projects of 24,or more acres (or equivalent square footage); or d. Mixed use projects 0 equivalent dwelling units or greater. Implementation M es: 1. In order to determine compliance with the air quality and climate protection threshold standard, city staff shall provide the GMOC with an annual report that evaluates the city's progress toward adherence with relevant federal, state, regional, and local air quality improvement strategies, regulations, and programs. The report shall include the following: a. An overview and evaluation of local development projects approved during the prior year identifying compliance levels and progress towards meeting the air quality and climate protection threshold standard. 16 2015-02-17 Agenda Packet Page 483 ATTACHMENT 3 —Accepted Edits Version b. An assessment of whether the greenhouse gas emissions reduction levels should be revised based on updated state and federal standards, as applicable. c. Additional information on non-development activities being undertaken by the city that contribute to meeting or furthering the air quality and climate protection threshold standard. 2. After the city prepares an annual evaluation report, it shall provide a copy of the report to the Air Pollution Control District(APCD)for its response. The APCD should provide the city with a report on overall regional and local air quality conditions, the status of regional air quality improvement implementation efforts under the Regional Air Quality Strategy and related federal and state programs, and the effect of those efforts/programs on the city of Chula Vista and local planning and development activities. 4r,11% Ar 3. Should the GMOC determine that a deficiency exists with respect to any of the above air quality and climate protection implementation measures, either locally, regionally or both, it may issue a Statement of Concern in its annual report. B. Schools Goal: To ensure that the Chula Vista Elementary School District(CVESD)and Sweetwater Union High School District(SUHSD) have the necessary school sites, infrastructure and funding mechanisms to meet the needs of students in new development areas in a timely manner. Objective: Provide school district personnel with current development forecasts so that they may plan and implement school building and/or allocation programs in a timely manner. 0111q� IL Facility Master Plan: The GMOC will request updates of the school districts'facility master plans or equivalent documents that define the schools' essential facility needs necessary to provide adequate physical accommodation. Threshold Standar : The city shall annually provide the Chula Vista Elementary School District(CVESD)and the Sweetwater Union High School District(SUHSD)with the city's annual 5-year residential growth forecast and request an evaluation of their ability to accommodate forecasted growth, both citywide and by subarea. Replies from the school districts should address the following: 17 2015-02-17 Agenda Packet Page 484 ATTACHMENT 3 —Accepted Edits Version 1. Amount of current classroom and "essential facility" (as defined in the Facility Master Plan)capacity now used or committed; 2. Ability to absorb forecasted growth in affected facilities and identification of what facilities need to be upgraded or added over the next five years; 3. Evaluation of funding and site availability for projected new facilities identified; and 4. Other relevant information the school district(s)desire(s)to communicate to the city h Management Oversight Commission (GMOC). Implementation Measure: Should the GMOC determine that a capacity problem exists with respect to physically accommodating students, either currently or within the next five years, it may issue a Statement of Concern in its annual report. The annual report shall be provided to both school districts, with follow-up, to assure appropriate response. C. Water K IF Goal: To ensure that adequate supplies of potable and recycled water are available to the city of Chula Vista. Objectives: 1. Ensure that adequate storage, treatment and transmission facilities are constructed concurrently with planned growth. NW 2. Ensure that water quality standards requirements are met during growth and construction. 3. Encourage water conservation and use of recycled water where appropriate and feasible. Thresho andar 1. Adequate water supply must be available to serve new development. Therefore, developers shall provide the city with a service availability letter from the appropriate water district for each project. 2. The city shall annually provide the San Diego County Water Authority, the Sweetwater Authority and the Otay Municipal Water District with the city's annual 5-year residential growth forecast and request that they provide an evaluation of their ability to accommodate forecasted growth. Replies should address the following: 18 2015-02-17 Agenda Packet Page 485 ATTACHMENT 3 —Accepted Edits Version a. Water availability to the city, considering both short-and long-term perspectives. b. Identify current and projected demand, and the amount of current capacity, including storage capacity, now used or committed. c. Ability of current and projected facilities to absorb forecasted growth. d. Evaluation of funding and site availability for projected new facilities. mm e. Other relevant information the district(s)desire to communicate to the city and the Growth Management Oversight Commission (GMOC). x Implementation Measure: Should the GMOC determine that a current or potential problem exists with respect to water, it may issue a Statement of Concern in its annual report. I 'X q0 19.09.060 Amendments and Supplemental Threshold Standards. These standards may be amended from time to time on approval by the city council. (Ord. 2860 §§ 1, 2, 2002; Ord. 2859 § 1, 2002; Ord. 2748 § 3, 1999; Ord.2486 § 1, 1991; Ord. 2448 §2, 1991). 19.09.070 Moratorium on Building Permits Allowed A. Imposing Temporary Limits on Building Permits The city council may, by ordinance, impose a limit on building permits for construction of residential and/or non- residential development after making specific findings as to the health, safety and welfare concerns of continued development, as set forth in "B" below. B. Findings Requir Prior to adopting an ordinance imposing a limit on building permits, the city council shall consider making one or more of the following findings: 1. That continued development will make it unlikely for the intent of the Growth Management Program to be achieved, as expressed by the"Growth Management Element'of the General Plan and this chapter. 19 2015-02-17 Agenda Packet Page 486 ATTACHMENT 3 —Accepted Edits Version 2. That continued development will cause deterioration of the city's quality of life, and compromise the health, safety and welfare in the city of Chula Vista. 3. That continued development will strain the city's fiscal resources an ability to deliver high quality services to all its residents. C. Procedures for Implementing Limits on Building Permits. If the city council makes the necessary required findings to impose a limit on building permits, th all adopt an ordinance that specifies: 1. Area where the moratorium applies; 2. Duration of the moratorium (when it begins and ends); 3. Any exemptions or exceptions or conditions. These shall be consistent with the overall objectives of the city action and broader land use policy. Exemptions could include"affordable" housing units (units sold or rented at below market rates to meet the city's Housing Element requirements). Exceptions might include units that have been allocated as part of a separate agreement(e.g., a development agreement); 4. Any conditions that would allow the moratorium to be lifted prematurely; and 5. How the building permits shall be allocated. 19.09.080 Requirement for Public Facilities Finance Plans (PFFP), Air Quality Improvement Plans, and Water Conservation Plans. ....................................................................................................................................................................................................................................................................................................................................... A. Public Facilities Financing Plans. No application for a SPA plan, or, if an SPA plan is not required, no application for a Tentative Map, shall be deemed complete or accepted for review unless: 1. It is accompanied by a PFFP which has been approved by the city; or 2. A PFFP that includes the project, has already been initiated; or 3. The applicant initiates the preparation of a PFFP. The PFFP may be waived by the city council upon a showing that there are no public facilities, infrastructure and service needs warranting the preparation of a PFFP. 20 2015-02-17 Agenda Packet Page 487 ATTACHMENT 3 —Accepted Edits Version B.Air Quality Improvement Plans. No application for a SPA plan, or, if an SPA plan is not required, no application for a Tentative Map shall be deemed complete or accepted for review unless: 1. It is accompanied by an Air Quality Improvement Plan that has been approved by the city; or 2. An Air Quality Improvement Plan that includes the project, has already been initiated; or 3. The applicant initiates the preparation of an Air Quality Improvement Plan in such form and/or containing such information, including maps, drawings, diagrams, etc., as the city Development Services Director shall require. F*%- J C.Water Conservation Plans. No application for an SPA plan, or, if an SPA plan is not required, no application for a Tentative Map, shall be deemed complete or accepted for review unless: 1. It is accompanied by a Water Conservation Plan that In een approved the city; or O 2. A Water Conservation Plan, that includes the project, has already been initiated; or 3. The applicant initiates the preparation of a Water Conservation Plan in such form and/or containing such information, including maps, drawings, diagrams, etc., as the city Development Services Director shall require. D. No SPA plan, nor any Tentative Map, shall be approved, or deemed approved, without an approved PFFP, an approved Air Quality Improvement Plan and an approved Water Conservation Plan. To provide consistency and implementation of said plans, the city council may impose any condition to the approval of a SPA plan or Tentative Map necessary to implement the PFFP, the Air Quality Improvement Plan, the Water Conservation Plan, theGrowZ nagement Program, or the Facility Master Plans. E. No Final Map shall be approved until all the conditions of the PFFP, the Air Quality Improvement Plan and the Water Conservation Plan have been met, or the project applicant has provided adequate security to the city that said plans will be implemented. F. No other discretionary planning approvals shall be granted unless the city council finds that the project is consistent with an approved PFFP, an Air Quality Improvement Plan, and a Water Conservation Plan. G. No building permit shall be issued unless the permit is consistent with any applicable PFFP, the Air Quality Improvement Plan and the Water Conservation Plan and all applicable fees, including, but not limited to, 21 2015-02-17 Agenda Packet Page 488 ATTACHMENT 3 —Accepted Edits Version development impact fees, traffic impact fees, drainage fees, school fees, park fees, sewer fees, water fees, or other development fees adopted by the city council, have first been paid or provision for their payment has been made to the satisfaction of the city council. H. No development shall occur in a PFFP area if the demand for any public facilities, infrastructure and services exceeds capacity and it is not feasible to increase capacity prior to completion of development unless the means, schedule and financing for increasing the capacity are established through the execution of a binding agreement providing for installation and maintenance of such facilities or improvements in advance of the city's phasing schedule. (Ord. 2790, 1999; Ord. 2448 §2, 1991). **Y J V�l 19.09.090 Public Facilities Finance Plan (PFFP) Contents. A. The required contents of a Public Facilities Finance Plan (PFFP)are outlined in Appendix C of the city's Growth Management Program Implementation Manual, as may be amended from time to time. 19.09.100 Public Facilities Finance Plan (PFFP)..Preparation. A.A PFFP, an Air Quality Improvement Plan, and a Water Conservation Plan may be processed concurrently with the SPA plan or Tentative Map. NO 1W B.A PFFP may be initiated by filing an application with the Development Services Director. The applicant shall pay a deposit at the time any application for a PFFP is accepted. C.A PFFP for a project shall be prepared by the city, or a consultant selected by the city, according to the procedures established by this chapter. D.The cost of PFFP preparation shall be advanced to the city by the applicant and any participating owner or owners prior to PFFP preparation. (Ord. 2790, 1999; Ord. 2448 §2, 1991). 19.09.110 Public Fac'i'lities Finance Plan (PFFP) Review. ....................................................................................................................................................................................................................................................................................................................................... A. PFFPs shall be reviewed according to the following procedure: 1. A completed PFFP complying with this chapter, and accompanied by a processing fee in an amount established by city council resolution, may be submitted to the Development Services Director for processing. If the Development Services Director determines that the plan complies with the provisions of this chapter, the Director shall accept the PFFP for review. Once the PFFP has been reviewed and 22 2015-02-17 Agenda Packet Page 489 ATTACHMENT 3 —Accepted Edits Version complies with the provisions of this chapter, it shall be set for public hearing before the planning commission together with the accompanying development plan. 2. The hearing shall be noticed according to the provisions of CVMC 19.12.070.A staff report containing recommendations on the PFFP shall be prepared and furnished to the public, the applicant, and the planning commission prior to the hearing. 3. The planning commission shall hear and consider the application and shall by resolution prepare recommendations and findings for the city council. The action of the commission shall be filed with the city clerk, and a copy shall be mailed to the applicant. N 1; 4. When the planning commission action is filed with the city clerk, the clerk shall set the matter for public hearing before the city council. The hearing shall be noticed according to the provisions of CVMC 19.12.070. `` 5. The city council shall hear the matter, and after considering the findings and recommendations of the planning commission, may approve, conditionally approve, or deny the plans. The city council may include in the resolution adopting the PFFP any fees or facilities improvement requirements provided for in city ordinances in order to implement the Growth Management Program, the facility master plans and the PFFP. 6. A PFFP may be amended following the same procedures for the original adoption. (Ord. 2790, 1999; Ord. 2448 §2, 1991). X� 'NW 19.09.120 Public Facilities Finance Plan (PFFP) Implementation. ................................................................... A. The Development Services Director shall ensure that PFFPs are prepared for all SPA plans and Tentative Maps, or equivalent projects pursuant to CVMC 19.48. B. In the event that the Development Services Director or his designee finds that the project is not in substantial compliance with the PFFP as modified or amended, the developer may be deemed to be in default and continued issuance of building or development permits may be affected. (Ord.2448 § 2,1991). 19.09.130 Public Facilities Finance Plan (PFFP) Amendment. ....................................................................................................................................................................................................................................................................................................................................... A.Adoption of a PFFP does not establish any entitlement or right to any particular general plan or zoning designation or any particular development proposal. 23 2015-02-17 Agenda Packet Page 490 ATTACHMENT 3 —Accepted Edits Version B. If the Development Services Director, pursuant to CVMC 19.09.110, determines that facilities or improvements within a PFFP are inadequate to accommodate any further development within that area, then development shall cease or be metered until a remedy is implemented. If the Development Services Director determines that such events or changed circumstances adversely affect the health, safety or welfare of the city, the city may require the amendment, modification, suspension, or termination (hereinafter"change")of an approved PFFP. If the city requires such change, the city shall (1)give notice to applicant or owner of(a)the city's intended action to change the PFFP, and (b)the reasons and factual basis for the city's determination; (2) give notice to the applicant or owner, at least 30 days prior to the hearing date, of the time and place of the hearing; and (3) hold a city council hearing on the determination, at which hearing the applicant or owner shall have the right to present witnesses, reports, and oral and written testimony. Prior to approving any change, the city shall find that(i)the circumstances were unknown or that the circumstances have changed; and (ii)the health, safety or welfare of the community requires the change of the PFFP. This provision shall neither limit nor expand the rights of liabilities of either of the parties with respect to the PFFP or the development of the property. If, after notice and hearing, the council determines that a deficiency exists, then no further building or development permits shall be issued within the affected area and development shall cease until an amendment to the applicable PFFP mitigating the deficiency is approved by the city council. C.The city council may initiate an amendment to any PFFP at any time if, in its discretion, it determines that an amendment is necessary to provide adequate facilities and improvements and subsequent permits will be conditioned on conformance. (Ord. 2448§2, 1991). 19.09.140 Exceptions and Exclusions. ....................................................................................................................................................................................................................................................................................................................................... A. Exceptions. Nothing in this chapter shall alter or amend the terms and conditions of any development agreement entered into between the city and a developer. B. Exclusions. Development projects which consist of facilities or structures constructed by a city, county, special district, state, or federal government or any agency, department, or subsidiary thereof for governmental purposes are excluded from the provisions of this chapter. To the extent that the city has authority to regulate such development projects, such projects shall not be exempt. For example, any private development occurring on land leased from a public agency would not be exempt. This exclusion shall not apply to development projects to which a possessory interest tax would be applicable. (Ord. 2448 §2, 1991). 24 2015-02-17 Agenda Packet Page 491 ATTACHMENT 3 —Accepted Edits Version 19.09.150 Extensions of Prior Approvals. ....................................................................................................................................................................................................................................................................................................................................... After approval of an applicable PFFP for a development project, an extension of the expiration date of a Tentative Map may only be granted if the project is in conformance with the PFFP and the Growth Management Program. The extension may be conditioned on such matters as the city deems appropriate or necessary to make the Tentative Map conform to the PFFP and the Growth Management Program, including, but not limited to, requiring the developer to submit any information, studies, plans and diagrams to show compliance with the applicable PFFP. (Ord. 2448 §2, 1991). 19.09.160 Obligation to Pay Fees or Install Facilities Required by Any Other Law. Nothing in this chapter shall be construed as relieving a builder, developer or subdivider from any requirement to provide public facilities, to dedicate property or to pay fees, which requirement is imposed pursuant to this title or pursuant to any city council policy. (Ord. 2448 §2, 1991). 19.09.170 Implementing Procedures. .................................................................................................................................................................................... ..........................) ................................................................... The city council may adopt any procedures it deems necessary to implement this chapter, including procedures for administering the Growth Management Program or facility master plans. (Ord. 2448 §2, 1991). 19.09.180 Council Actions Fees Notice. ............................................................................................r......................................................................V...................................................................................................................................... A.Whenever this chapter requires or permits an action or decision of the city council, that action or decision shall be accomplished by resolution and/or ordinance, as appropriate. B. The city council shall establish application and processing fees for the submission and processing of Public Facilities Financing Plans (PFFPs). C.Whenever written notice is required to be given to property owners under this chapter, the notice shall be mailed by first class mail to the owners shown on the last equalized assessment roll. (Ord. 2448 §2, 1991). 19.09.190 Severability. If any section, subsection, sentence, clause or phrase of the ordinance codified in this chapter is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance codified in this chapter. The city council declares that it would have passed the ordinance codified in this chapter, and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any part thereof be declared invalid or unconstitutional. (Ord. 2448 §2, 1991). 25 2015-02-17 Agenda Packet Page 492 ATTACHMENT 3 —Accepted Edits Version 19.09.200 Facility Master Plans. ....................................................................................................................................................................................................................................................................................................................................... The city shall maintain a series of facility master plans, as may be amended from time to time, for infrastructure and services throughout the city that regard the threshold standards in this chapter, including, but not limited to, police, fire and emergency services, libraries, parks and recreation, wastewater, drainage and circulation. In anticipation of service demands, these master plans shall contain an analysis of existing facilities, existing and projected demand, and proposed maintenance and capital improvement projects. They shall also identify financing plans to accomplish identified improvements. Home < 26 2015-02-17 Agenda Packet Page 493 ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA APPROVING AMENDMENTS TO CHULA VISTA MUNICIPAL CODE CHAPTER 19.09 (GROWTH MANAGEMENT) (FIRST READING) WHEREAS, in response to growth and in anticipation of additional growth in Chula Vista, the City Council adopted the Threshold Standards and Growth Management Oversight Committee Policy in 1987 and the Growth Management Program and "Growth Management" ordinance in 1991; and WHEREAS, in 2003 the City Council, in response to a growth boom that began in 1999, requested that a comprehensive review of the "Growth Management" ordinance and threshold standards be conducted to make certain that they worked"in today's world"; and WHEREAS, in 2004 a white paper with observations and suggestions to explore updates to the "Growth Management" ordinance and threshold standards, was presented to Council, and Council accepted the white paper, authorizing a work program for undertaking a "top-to-bottom" review and the preparation of resultant revisions to the City's Growth Management Program provisions; and WHEREAS, subsequent to Council authorization, a consultant and City staff prepared a draft"Growth Management" ordinance update; and WHEREAS, the Growth Management Oversight Commission (GMOC) participated in discussions with the consultant and City staff in revising the "Growth Management" ordinance; and WHEREAS, various GMOC annual reports since 2005 have recommended changes to the "Growth Management" ordinance and threshold standards; and WHEREAS, on October 22, 2014, the GMOC reviewed and accepted the final proposed revisions to the "Growth Management" ordinance; and WHEREAS, the Director of Development Services set a hearing before the Planning Commission for the consideration of and recommendation on changes to the "Growth Management" ordinance. Notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City at least ten 10 days prior to the hearing; and WHEREAS, a hearing was held at the time and place as advertised on November 12, 2014 at 6:00 p.m. in the City Council Chambers, 276 Fourth Avenue, before the Planning Commission of the City of Chula Vista to receive the recommendation of City staff and to hear public testimony with regards to the proposal, and the hearing was thereafter closed; and 1 2015-02-17 Agenda Packet Page 494 WHEREAS, the Planning Commission considered all reports, evidence, and testimony presented at the public hearing with respect to the "Growth Management'' ordinance; and WHEREAS, the Planning Commission did find and determine that the proposed ordinance is consistent with the City of Chula Vista General Plan and local, state, and federal law, and that the public necessity, convenience, general welfare and good zoning practice support the requests; and WHEREAS, the Planning Commission, after considering all evidence and testimony presented, recommended by a vote of 5-0-0-2 that the City of Chula Vista City Council approve the revisions to the "Growth Management" ordinance; and WHEREAS, a hearing time and place was set by the City Council of the City of Chula Vista for consideration of the proposal and notice of said hearing, together with its purpose, was given by publication in a newspaper of general circulation in the City at least ten 10 days prior to the hearing; and WHEREAS, a duly called and noticed public hearing was held at the time and place as advertised on January 13, 2015 at 2:00 p.m. in the City Council Chambers, 276 Fourth Avenue, before the City Council to receive the recommendation of City staff and to hear public testimony with regards to the proposal, and the hearing was thereafter closed. NOW, THEREFORE, BE IT ORDAINED that the City Council does hereby find and determine as follows: Section L• Environmental That the City Council has reviewed the proposed activity for compliance with the California Quality Act (CEQA) and has determined that there is no possibility that the activity may have a significant effect on the environment; therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. Section II: General Plan That the proposed changes to the"Growth Management" ordinance (Chapter 19.09 of the Chula Vista Municipal Code) are consistent with the elements of the City's General Plan. Section III.Adoption The City Council does hereby approve the Ordinance that would amend the "Growth Management" ordinance (Chapter 19.09 of the Chula Vista Municipal Code). 2 2015-02-17 Agenda Packet Page 495 Section IV. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section V. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section VI. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section VII. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by Approved as to form by Kelly Broughton Glen R. Googins Development Services Director City Attorney 3 2015-02-17 Agenda Packet Page 496 PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista, California, this 13th day of January, 2015,by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mary Casillas Salas,Mayor ATTEST: Donna R.Norris, CMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Donna Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing Ordinance No. had its first reading at a regular meeting held on the 13th day of January, 2015 and its second reading and adoption at a regular meeting of said City Council held on the day of 2015; and was duly published in summary form in accordance with the requirements of state law and the City Charter. Executed this day of 2015. Donna R.Norris, CMC, City Clerk 4 2015-02-17 Agenda Packet Page 497 RESOLUTION NO. RESOLUTION OF THE CITY OF CHULA VISTA APPROVING THE GROWTH MANAGEMENT PROGRAM IMPLEMENTATION MANUAL TO REPLACE THE THRESHOLD STANDARDS AND GROWTH MANAGEMENT OVERSIGHT COMMITTEE POLICY, AND THE GROWTH MANAGEMENT PROGRAMDOCUMENT WHEREAS, in response to growth and in anticipation of additional growth in Chula Vista, the City Council adopted the Threshold Standards and Growth Management Oversight Committee Policy in 1987 and the Growth Management Program and "Growth Management" ordinance in 1991; and WHEREAS, in 2003 the City Council, in response to a growth boom that began in 1999, requested that a comprehensive review of the City's Growth Management Program be conducted; and WHEREAS, in 2004 a white paper with observations and suggestions to explore updates to the Growth Management Program was presented to Council, and Council accepted the white paper, authorizing a work program for undertaking a"top-to-bottom" review and the preparation of resultant revisions to the City's Growth Management Program provisions; and WHEREAS, a consultant and City staff prepared a draft growth management document (the Growth Management Program Implementation Manual) to replace the Threshold Standards and Growth Management Oversight Committee Policy and the Growth Management Program (the"Growth Management Program documents"); and WHEREAS, the Growth Management Oversight Commission (GMOC) participated in discussions with the consultant and City staff in revising the Growth Management Program documents; and WHEREAS, various GMOC annual reports since 2005 have recommended changes to the Growth Management Program documents; and WHEREAS, on October 22, 2014, the GMOC reviewed and accepted the final proposed revisions to the Growth Management Program documents; and WHEREAS, the Director of Development Services set a hearing before the Planning Commission for the consideration of and recommendation on changes to the Growth Management Program documents. Notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City at least ten 10 days prior to the hearing; and WHEREAS, a hearing was held at the time and place as advertised on November 12, 2014 at 6:00 p.m. in the City Council Chambers, 276 Fourth Avenue, before the Planning 1 2015-02-17 Agenda Packet Page 498 Commission of the City of Chula Vista to receive the recommendation of City staff and to hear public testimony with regards to the proposal, and the hearing was thereafter closed; and WHEREAS, the Planning Commission considered all reports, evidence, and testimony presented at the public hearing with respect to the Growth Management Program documents; and WHEREAS, the Planning Commission did find and determine that the proposed resolution is consistent with the City of Chula Vista General Plan and local, state, and federal law, and that the public necessity, convenience, general welfare and good zoning practice support the requests; and WHEREAS, the Planning Commission, after considering all evidence and testimony, presented recommended by a vote of 5-0-0-2 that the City of Chula Vista City Council approve the revisions to the Growth Management Program documents; and WHEREAS, a hearing time and place was set by the City Council of the City of Chula Vista for consideration of the proposal and notice of said hearing, together with its purpose, was given by publication in a newspaper of general circulation in the City at least ten 10 days prior to the hearing; and WHEREAS, a duly called and noticed public hearing was held at the time and place as advertised on January 13, 2015, at 2:00 p.m. in the City Council Chambers, 276 Fourth Avenue, before the City Council to receive the recommendation of City staff and to hear public testimony with regards to the proposal, and the hearing was thereafter closed; and WHEREAS, City Council hereby finds that replacement of the Threshold Standards and Growth Management Oversight Committee Policy and the Growth Management Program with the Growth Management Implementation Manual is consistent with the elements of the City's General Plan; and WHEREAS, City Council has reviewed the proposed activity for compliance with the California Quality Act (CEQA) and has determined that there is no possibility that the activity may have a significant effect on the environment; therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Growth Management Program Implementation Manual to replace the Threshold Standards and Growth Management Oversight Committee Policy and the Growth Management Program document. Presented by Approved as to form by Kelly Broughton Glen R. Googins Development Services Director City Attorney 2 2015-02-17 Agenda Packet Page 499 PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista, California, this 13th day of January, 2015,by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mary Casillas Salas,Mayor ATTEST: Donna R.Norris, CMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Donna Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. was adopted at a regular meeting of the City Council held on the 13th day of January, 2015 and was duly published in summary form in accordance with the requirements of state law and the City Charter. Executed this day of 2015. Donna R.Norris, CMC, City Clerk 3 2015-02-17 Agenda Packet Page 500 City of Chula Vista CTY CHUILAVISTA Staff Report File#: 15-0003, Item#: 10. CONSIDERATION OF WAIVING A MINOR MATHEMATICAL ERROR IN THE BID RECEIVED FOR THE "REPLACEMENT OF CURB AND GUTTER CITYWIDE FISCAL YEAR 2014/2015" RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING A MINOR MATHEMATICAL ERROR; ACCEPTING BIDS; AWARDING A CONTRACT FOR THE "REPLACEMENT OF CURB AND GUTTER CITYWIDE FY2014-2015, IN THE CITY OF CHULA VISTA, CALIFORNIA CIP#STL402" PROJECT TO JUST CONSTRUCTION, INC. IN THE AMOUNT OF $165,686.50; AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AMOUNT NOT TO EXCEED $15,313.50 RECOMMENDED ACTION Council conduct the public hearing and adopt the resolution. SUMMARY On January 7, 2015, the Director of Public Works received three (3) sealed bids for the "Replacement of Curb and Gutter Citywide FY2014-2015 in the City of Chula Vista, California CIP#STL402" Project. The project will remove and replace curb, gutter, sidewalk, and driveways displaced by street trees at various locations within the City as listed in Attachment 1. The proposed resolution, if approved, would waive a minor mathematical error, accept bids, award a public works contract to Just Construction, Inc., in the amount of $165,686.50 and authorize the expenditure of all available contingency funds in the amount not to exceed $15,313.50. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 1(c) categorical exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines. Thus, no further environmental review is necessary. BOARD/COMMISSION RECOMMENDATION Not applicable. DISCUSSION Design staff prepared the sidewalk repair and replacement project bid documents and advertised the project on December 19, 2014. On January 7, 2014, the Director of Public Works received three (3) bids as follows: CONTRACTOR IBID City of Chula Vista Page 1 of 3 Printed on 2/12/2015 2015-02-17 Agenda Packet powered by Le9age 501 File#: 15-0003, Item#: 10. 1.Just Construction, Inc. - San Diego, CA $165,686.50* ($163,912.00 Bid Opening) 2.PAL General Engineering, Inc. - San Diego, CA $168,349.50 3.Carolino and Sons Engineering, Corp. - National City, CA $212,212.00 *The submitted bid proposal contained mathematical errors that did not affect the unit price, but affected the total bid amount. Corrections of bid totals did not change the outcome and ranking of the bids. Staff's review of the low bid by Just Construction, Inc. found a mathematical error in the submitted bid amount. The corrected bid amount is $165,686.50, which is an increase of $1,774.50 from the submitted bid. This correction did not change the ranking order of the bids or affect the unit price of the bid items. Just Construction, Inc. submitted a letter dated January 9, 2015, as shown in Attachment 2, acknowledging their mathematical error and confirming the corrected bid amount of $165,686.50. This low bid is below the Engineer's estimate of $167,198 by $1,511.50 (approximately 1%). Just Construction, Inc. is a currently active licensed Class A General Engineering Contractor (License No. 968910) and has performed similar work in the City with satisfactory performance. Aside from the mathematical error discussed above, it has been determined that the bid package is complete, with no other errors or omissions. Staff recommends waiving the minor mathematical error and awarding a construction contract to Just Construction, Inc. in the amount of$165,686.50. Wage Statement The contractors who bid on this project are not required to pay prevailing wages to persons employed by them for the work performed under this project. However, a "Notice to Contractors" was sent to various trade publications in order to encourage disadvantaged business enterprises (DBEs) to bid on the project. Disclosure Statement Attachment 3 is a copy of the Contractor's Disclosure Statement. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it solely concerns the repair, replacement or maintenance of existing streets, sewer, storm drainage or similar facilities and, as such, the financial effect of the decision on real property is presumed to be not material, pursuant to California Code of Regulations Title 2, sections 18704.2(b)(2). Consequently, this item does not present a conflict under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The Replacement of Curb and Gutter Citywide FY2014-2015 STL402 project supports the Strong & Secure City of Chula Vista Page 2 of 3 Printed on 2/12/2015 2015-02-17 Agenda Packet Page 502 File#: 15-0003, Item#: 10. Neighborhoods goal as it provides and maintains curb, gutter, and sidewalk throughout the City in excellent condition, vital to the quality of life for the residents. Well maintained curb, gutter, and sidewalk infrastructure improves safety to pedestrians as well as creates appealing communities to live, work, and play. CURRENT YEAR FISCAL IMPACT Funds for this project were included in the Fiscal Year 2014-2015 budget; no additional appropriations are necessary. The table below summarizes the project costs and the funding sources: FUNDS REQUIRED FOR CONSTRUCTION A. Contract Amount $165,686.50 B. Contract Contingency $15,313.50 C. Construction Inspection Staff $20,000.00 TOTAL FUNDS REQUIRED FOR CONSTRUCTION $201,000.00 Funding Source STL402 - Gas Tax Fund $101 ,000.00 Street Maintenance Operating Budget-General Fund $100,000.00 Total Funding $201,000.00 ONGOING FISCAL IMPACT Upon completion of the project and one-year contractor maintenance period, the improvements will require only routine maintenance of the street facilities. ATTACHMENTS 1 . List of Locations 2. Bid Correction Letter 3. 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I-� w 'MS ou 3 4 ` O; .M a0 MQ0 to cc 3 (AS)'MQ kn W4 ouow,q G4 0 [ W OuOI & s M `n L F llHof id i .-w t _...... ,....._. _ i _ ;..... ... . 7 t g V1 fl EU rn .y oa o o n oo E kn Z ; tnt N Ch 0. € r € 3 y A Z a € Q fu In zo � Cn °3 0 a o w 7 .... # OOEOt O E ry -N M3 "t1' VIC�O�n E000� fan f+i M M O O O� {{OENr�D dgW E a� 2015-02-17 Agenda Packet Page 509 ■ JUST CONSTRUCTION, INC. GENERAL BUILDING&ENGINEERING CONTRACTORS CONTRACTOR'S LICENSE NO.:968910 www.iustconstructioninc.com - 3103 Market Street San Diego, CA 92102 CONSTRUCTION Ph: (619) 702-7220 Fax: (619) 702-7110 January 9,2015 Hand Delivered Patrick Moneda In response to this letter please Acting Senior Civil Engineer refer to: Public Works-Engineering Curb&Gutter Citywide 276 Fourth Avenue Bldg. B CIP No.STL 402 Chula Vista, CA 91910 Reference: Replacement of Curb & Gutter Citywide FY2014-2015 in the City of Chula Vista, California(CIP# STL402) Subject: Bid Correction Letter Dear Mr. Moneda, Just Construction is aware of the mathematical error in our bid for the aforementioned project. The error came about when the last cell in our spreadsheet did not add up correctly. We will perform the work for the final contract value of$165.686.50 and acknowledge our final price. Should you have any questions, please contact me at(619) 702-7220 or via e-mail at andres J tcon tr oninc.com Sincer , /Andres Romero resident Just Construction, Inc. I Curb &Gutter Citywide FY2014-2015 CIP#STL402 2015-02-17 Agenda Packet Page 510 CITY OF CHULA VISTA DISCLOSURE STATEMENT Pursuant to Council Policy 101-01, prior to any action upon matters that will require discretionary action by the Council,Planning Commission and all other official bodies of the City,a statement of disclosure of certain ownership or financial interests, payments, or campaign contributions for a City of Chula Vista election must be filed.The following information must be disclosed_ j 1. List the names of all persons having a financial interest in the property that is the subject of the application or the contract,e.g., owner,applicant, contractor, subcontractor,material supplier. ! I ? NIA mm t i 2. If any person* identified pursuant to(1)above is a corporation or partnership, list the names of all individuals with a$2000 investment in the business(corporation/partnership) entity. N/A 3. If any person* identified pursuant to (1)above is a non-profit organization or gust,list the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. i N/A I 4. Please identify every person, including any Agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter. N/A E I I 5, Has any person* associated with this contract had any financial dealings with an official" of the City of Chula Vista as itrelates to this contract within the past 12 months? Yes No x i N/A i I I I I If-Yes,briefly describe the nature of the financial interest the official**may have in this contract. 19 Project 4 STL402 Q\EngineeringW1 ProjectsWUSTL402-Sidewalk Rehab FY14-1515pees\STL402 Contracts.doc 2015-02-17 Agenda Packet Page 511 NIA 6. Have you made a contribution of more than $250 within the past twelve (12)months to a current .member of the Chula Vista City Council?No x Yes_U yes,which Council member? NIA t 7. Have you provided more than$340 (or an item of equivalent value)to an official** of the City of Chula Vista in the past twelve(12)months?(This includes being a source of income,money to retire a legal debt,gift, loan,etc.)Yes_ No x i If Yes,which official** and what was the nature of item provided? NIA Date:_anuar-y 7, 215 Signatu of ntr for/Applicant H. Andres Romero Print or type name of ContractorlApplicant �. * Person is defined as: any individual, firm, co-partnership,joint venture, association, social olub, fraternal organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipality, district, or other political subdivision, -or any other group or combination acting as a unit. ** Official includes, but is not limited to: Mayor, Council member, Planning Commissioner, i Member of a board, conunission, or committee of the City, employee, or staff members. I i r i j 20 .Project 4 STL 402 QAF_ngineering\Ali Projects\STLISTL 402-Sidewark Rehab FY14-I51Specs\STI.402 Contracts.doc 2015-02-17 Agenda Packet Page 512 RESOLUTION NO. 2015- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING A MINOR MATHEMATICAL ERROR; ACCEPTING BIDS; AWARDING A CONTRACT FOR THE "REPLACEMENT OF CURB AND GUTTER CITYWIDE FY2014-2015, IN THE CITY OF CHULA VISTA, CALIFORNIA CIP#STL402" PROJECT TO JUST CONSTRUCTION, INC. IN THE AMOUNT OF $165,686.50; AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AMOUNT NOT TO EXCEED $15,313.50 WHEREAS, on January 7, 2015, the Director of Public Works received three (3) sealed bids for the "Replacement of Curb and Gutter Citywide FY2014-2015 in the City of Chula Vista California CIP#STL402" Project"; and WHEREAS, The Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 1(c) categorical exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines; and WHEREAS, the three (3) bids are as follows: CONTRACTOR BID 1 Just Construction, Inc. - San Diego, CA $165,686.50* $(163,912.00 Bid Opening) 2 PAL General Engineering, Inc. - San Diego, CA $168,349.50 3 Carolino and Sons Engineering, Corp. — National City, CA $212,212.00 *The submitted bid proposal contained mathematical errors that did not affect the unit price, but affected the total bid amount. Corrections of bid totals did not change the outcome and ranking of the bids. WHEREAS, Staff's review of the low bid by Just Construction, Inc. found a mathematical error in the submitted bid amount that did not change the ranking order of the bids or affect the unit price of the bid items; and WHEREAS, Just Construction Inc. submitted a letter dated January 9, 2015 acknowledging their mathematical error and confirming the corrected bid amount of $165,686.50; this corrected bid amount is below the Engineer's estimate of$167,198 by $1,511.50 (approximately 1%); and 2015-02-17 Agenda Packet Page 513 Resolution No. 2015- Page 2 WHEREAS, Just Construction, Inc. is a currently active licensed Class A General Engineering Contractor (License No. 968910) and has performed similar work in the City with satisfactory performance; and WHEREAS, sufficient funds from Gas Tax and General Fund are available in the CIP#STL402 and Street Maintenance Operating Budget to complete the project; and WHEREAS, a breakdown of construction costs is as follows: FUNDS REQUIRED FOR CONSTRUCTION A. Contract Amount $165,686.50 B. Contract Contingency $15,313.50 C. Construction Inspection Staff $20,000.00 TOTAL FUNDS REQUIRED FOR CONSTRUCTION $201,000.00 Funding Source STL402 — Gas Tax Fund $101,000.00 Street Maintenance Operating Budget-General Fund $100,000.00 Total Funding $201,000.00 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby waive a minor mathematical error; accept bids; award a contract for the "Replacement of Curb and Gutter Citywide FY2014-2015 in the City of Chula Vista, California CIP#STL402" Project to Just Construction, Inc., in the form presented, with such minor modifications as may be required or approved by the City Attorney, in the amount of $165,686.50; authorize the expenditure of all available contingency funds in the amount not to exceed $15,313.50; and authorize and direct the City Manager or his designee to execute same. Presented by Approved as to form by Richard A. Hopkins Glen R. Googins Director of Public Works City Attorney 2015-02-17 Agenda Packet Page 514 City of Chula Vista CTY CHUILAVISTA Staff Report File#: 15-0002, Item#: 11. REPORT ON FISCAL YEAR 2014 STRATEGIC PLAN ACCOMPLISHMENTS RECOMMENDED ACTION Council accept the report. SUMMARY In 2013 the City prepared a Strategic Plan. One of the key provisions of the Strategic Plan is for the City Council to review progress toward established goals and provide feedback on an annual basis. This review will include an update on accomplishments and performance, as well as the opportunity to revisit the Goals, Strategies and Initiatives prior to the upcoming budget cycle. Normally Staff would have presented this report in the Fall, but postponed this report out/review session until the new City Council was seated. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it involves a governmental administrative activity that will not result in direct or indirect physical changes to the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION The City of Chula Vista is implementing the Strategic Plan as a part of an integrated system. This planning and analysis system will be conducted in an annual cycle that encourages focused, meaningful service delivery to benefit all of Chula Vista. It is a comprehensive framework that ensures: priorities set by the City Council are clear, the goals established are responsive to priorities, objectives are achieved that meet these goals, and performance is monitored to ensure that our City government is accountable to meeting the needs of the community. The goals contained within the City of Chula Vista Strategic Plan are a consolidation of those stated by City Councils, boards and commissions, and the public over time. The five over-arching goals are collectively what constitute the Quality of Life in Chula Vista: City of Chula Vista Page 1 of 3 Printed on 2/12/2015 2015-02-17 Agenda Packet powered by Le9age 515 111 The goals are broad statements of what we are striving for in delivering services to our community-, they are both quantitative and qualitative in nature. The Plan identifies thirteen strategies and twenty- eight initiatives to support the five goals. These strategies and initiatives upon implementation are how we achieve our shared vision of a vibrant and sustainable quality of life for Chula Vista residents Qu a I ity of Life operational Economic Healthy Strong&Secure Connected Excellence Vitality Community Neighborhoods Community Collaborate with Strengthen and Protect resources Create and maintain Promote diverse Residents and diversifythe Cites and environmental safe and appealing opportunities that businesses to economy by health for both neighborhoods connect community provide responsive supporting and current residents where people and foster civic and responsible advancing existing and future choose to shop, pride through public service by businesses;targeting generations. Foster work,play and stay. comprehensive implementing and attracting new the health of our communication effective and businesses; physical strategies,and efficientoperations. promoting balanced environment cultural,educational land use decisions; through balanced, &recreational and engaging the connected and programming. community to sustainable land reinvest in the city. uses. • businesses. creation A staff committee, which included representatives from every department, was formed to assist in the • oversight of - Plan. They - -• between • - •-r, 2012 and March, 2013 to create the Plan; their work included developing the long-term strategies and annual initiatives. The City of • of • on • powered 2015-02-17 File#: 15-0002, Item#: 11. Strategic Plan was presented to nearly all City Boards and Commissions. The final Plan was presented to the City Council with the FY14 budget in May, 2013. The committee now meets periodically to review performance on the objectives, recommend any needed adjustments and check in on initiatives. The feedback loop is continuous, not a start and stop process. The "Plan, Do, Check, Act" philosophy is a foundation of Continuous Improvement. Reporting out to City Council and staff on our progress against identified goals is an essential component of accountability. Evaluation of past performance also helps identify necessary changes in initiatives and recommendations for resource allocations. At this time, we ask for your review of last fiscal year's performance, and to provide input on priorities for the upcoming fiscal year (2015/2016). DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500-foot rule found in California Code of Regulations section 18705.2 (a)(11), is not applicable to this decision. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The annual report provides an important feedback opportunity to review performance on the objectives and recommend any needed adjustments. CURRENT YEAR FISCAL IMPACT There is no fiscal impact in administering the Strategic Plan. The Strategies and Initiatives implemented are provided within departmental budgets. ONGOING FISCAL IMPACT There is no ongoing fiscal impact in administering the Strategic plan. Generally, departments determine which Strategies and Initiatives are able to be pursued within available resources. The Strategic plan identifies which Strategies and Initiatives would require additional resources. ATTACHMENTS 1 . FY14 Strategic Plan Accomplishments Staff Contact: Amanda Mills, Performance and Organizational Development Manager, Administration Department City of Chula Vista Page 3 of 3 Printed on 2/12/2015 2015-02-17 Agenda Packet powered by Le9age 517 Fiscal Year CITY CHULAVISTA OF 2 r 3 - 014 11111111 -0 Strategic Plan Annual Report 2015-02-17 Agenda Packet mx fin.. � \ 1� � i �'� �•�1'i: �� - City of Chula Vista STRATEGIC PLAN ANNUAL REPORT About the Plan - In 2013 the City prepared a Strategic Plan. The goals are broad statements of what we are striving for in delivering services to our community.The five overarching goals are: Operational Excellence Economic Vitality Healthy Community Strong and Secure Neighborhoods Connected Community The Plan identifies strategies and initiatives to support the core goals. Implementation of these strategies and initiatives is how we achieve our shared vision of a vibrant and sustainable quality of life for Chula Vista residents and businesses. One of the key provisions of the Strategic Plan is for review and feedback on an annual basis. Reporting out to City Council,the community, and staff on our progress is an essential component of accountability. Summary of the year - This report shares some highlights from the 2013-2014 fiscal year. The City continues to provide stellar services every day to the community, and achieve significant advancements toward long term goals. Looking back on the last fiscal year, there are some common themes that stand out. Partnerships - The City works with others to accomplish shared goals.The City has been able to increase or enhance service delivery by working with other agencies, businesses, nonprofit organizations, and community _. groups. SQUEEZED, r AO � Community engagement - This community is proud and participates in making it even better. Our citizens are contributing in the betterment of this community whether it is through volunteering, attending public meetings or joining in a community celebration. r Innovation in process and technology - The City is improving service delivery through process improvement tools and technology. We are not afraid to ask if there is a better way of doing things. Looking Forward - A successful year does not mean that our work is done. The Annual Report process gives us the ability to look back in order to plan ahead for the upcoming fiscal year (2015/2016). Evaluation of past performance helps identify necessary changes in initiatives and recommendations for resource allocations. 2015-02-17 Agenda Packet Page 519 Operational Excellence Continuous Improvement • Fiscal Health • Quality Customer Service Collaborate with residents and businesses ,, to provide responsive and responsible Vf public service by implementing effective and efficient operations. 2015-02-17 Agenda Packet Page 520 Operational Excellence CITY OF CHULA VISTA Improvement Quality Collaborate with Residents and businesses to provide responsive and responsible public service by implementing effective and efficient operations. Uphold a commitment to Fiscal Health • Recognized with Government Finance Officers' Association (GFOA) award for both the Budget and the Comprehensive Annual Financial Report • Received S&P Bond Rating increase two years in a row(A-to A to AA-) • Reduced debt obligations for City and residents through Bond payoffs and refunding • Partnered with the Franchise Tax Board to exchange data regarding existing Business Licenses to improve compliance and collection efforts • Began the Cost Recovery, Resource Allocation and Revenue Enhancement Study for service and rental fees through the Recreation Department • Updated sewer billing system, improving efficiency, internal controls, and data security Excel in service delivery by continuously improving • Seventeen staff people completed Lean Certification • Completed seven Continuous Improvement projects in Clerk, Communications, Development Services. Finance, Human Resources, Police and Public Works to improve and/or streamline processes • Worked with the Charter Review Commission and Public Works to develop a Charter Amendment to streamline Public Works contracting practices • Updated quarterly Continuous Improvement accomplishments to City Council • Library Lean and Continuous Improvement efforts highlighted at State Library conference program • Upgraded the Police Departments Computer Aided Dispatch (CAD) database used to store all emergency 911 calls • Added one day of service to Otay Library through resource analysis and continuous improvement strategies • Negotiated and settled three bargaining unit contracts • Increased employee wellness initiatives • Employee Engagement Committee underway, events initiated based on employee survey • Completed Employee Turnover report Ensure interaction with the City is a positive experience • Made most commonly requested public records available online • Upgraded electronic records management software for simplified document searching • Implemented paperless agenda software that improves public access to agenda documents • Updated the Business license system providing for on-line renewal application process. • Increased number of spay/neuter public clinics from 20 to 30 clinics per year • Revised and updated Dog Hearing and Appeal Process • Upgraded the Library's server to improve the library's electronic operations • Launched ACT Chula Vista (SeeClickFix) system to increase non-emergency citizen access reporting capability • Added WiFi to multiple facilities to increase staff capabilities and public access — � sauea •• - 2015-02-17 Agenda Packet Page 521 Economic Vitality Strong, Vibrant City • Properous Environment Strengthen and diversify the City's economy by: supporting and advancing existing businesses, targeting and attracting 0 ' new businesses, promoting balanced land use decisions, and engaging the community to reinvest in the City. 2015-02-17 Agenda Packet Page 522 • - Economic Vitality Tn of CHUTA VISTA . . Strengthen and diversify the City's economy by: supporting and advancing existing businesses,targeting and attracting new businesses, promoting balanced land use decisions, and engaging the community to reinvest in the City. Provide policies,planning,infrastructure,and services that are fundamental to an economically strong, vibrant city • Obtained California Coastal Commission certification and amendment for Bayfront Local Coastal Program • Obtained California Public Utilities Commission approval and processed SDG&E South Bay Substation relocation • Assisted Port team with completion of design improvements for the H Street project that held its construction groundbreaking in November 2013 • Completed Village 8 West and 9 SPA Plan, EIR and Tentative Map entitlements pursuant to the City's Land Offer Agreement with Otay Land Company • Completed entitlement processing for seven projects providing almost 700 residential units • Completed first review of technical studies for University Park& Innovation District • Completed the Palomar Gateway Specific Plan • Received a $500,000 grant to complete the F Street Promenade Streetscape Master Plan • Third Avenue Streetscape Project,from H Street to Madrona completed, received funding for next two phases Promote an environment for residents and businesses to prosper • Initiated the implementation phase of the Business Cluster Analysis Study, completing 16 of the 24 recommendations • Increased participating businesses and marketing/advertising campaign for Shop Chula Vista Now program to increase sales at local merchants and to secure new merchant promotions • Developed new branding and marketing materials for Economic Development efforts • Implemented marketing strategies based on results of region wide Public Opinion Survey on awareness and attitudes about City of Chula Vista assets and attractions • Increased contact list of commercial real estate professionals to provide monthly update on items of interest • Expanded participation in state and regional organizations by joining the San Diego Regional EDC, Clean Tech San Diego and Team California • Marketed new California Competes Incentive Program to local businesses to over 2,000 local businesses • Participated with South County EDC and their members on Feet on the Street, which surveyed approximately 200 businesses on local business issues • Participated in outreach events with binational counterparts, including Binational Legislators Forum, Smart Border Coalition, Tijuana Innovadora, Baja California Investment Forum, Aerospace & Medical Device Trade Shows and meetings with City of Tijuana and State of Baja economic development officials, and private sector economic development organizations • Completed master sign program for the Chula Vista Center, which will increase the Center's visibility and acessibility • Offered free tax service for low income and senior residents after recruitment for additional volunteers • Chula Vista has a number of new offices from Baja California start ups \'IXIA I 1 2015-02-17 Agenda Packet Page 523 Health y Community Supportive, Built Environment • Environmental Protection • Healthy,Active Environment Protect resources and environmental health for both current residents and future generations. Foster the health of our physical environment through balanced, connected and sustainable land uses. 2015-02-17 Agenda Packet Page 524 (Healthy J Community �r —CITY OF CHUTA VISTA . . . Protect resources and environmental health for both current residents and future generations. Foster the health of our physical environment through balanced, connected and sustainable land uses. Support an environment that fosters health& wellness • Awarded a National League of Cities grant under the Cities Expanding Health Access for Children and Families Program, allowing participation in the associated Leadership Academy • Increased the accessibility to swim lessons by hosting the World's Largest Swim Lesson event, providing free swim lessons, and collecting 906 new swim suits for low-income children and adults through the inaugural Aquatic Holiday Swimsuit Drive. The World's Largest Swim Lesson event is now in the Guinness Book of World Records • Executed agreements for nine service programs focused on health services, senior programs, homeless assistance, and food programs • Held the first Chula Vista Jumps event in partnership with the American Heart Association and Chula Vista Elementary School District to raise awareness of the Jump Rope for Heart campaign • Awarded an Organizational Leadership Award by the U.S. Environmental Protection Agency(EPA) • Named a Bronze Level Bicycle Friendly Community Develop and implement strategies and programs that restore and protect natural resources and promote sustainability • Developed the food waste collection pilot program in partnership with Republic Services • Developed a "Clean Energy" CFD (PACE Program), which helps residents finance energy and water upgrades • Approved the Electrical Generating Facilities (EGFs) regulations to guide the location and operation of new and repowered EGFs, aimed at reducing the effects associated with EGFs on sensitive receptors. • Replaced five gasoline powered vehicles with five compressed natural gas (CNG) powered vehicles. • Convened a multi-stakeholder Climate Change Working Group to develop recommendations for updating the City's Climate Action Plan. • Converted approximately 4,000 street lights along arterial roadways to LED fixtures, which utilize almost 50% less energy than traditional lights • Provided over 600 free energy and water evaluations to businesses and residents through City's Local Government Partnership with SDG&E and the California Public Utilities Commission • Collected over 227 tons of household hazardous waste through the drop-off facility and collection events • Collected 1%tons of unwanted pharmaceuticals through two collection events and drop-off receptacles • Processed 726 residential photovoltaic permit applications,a 93% increase over FY13 Provide parks, open spaces,outdoor experiences,libraries and recreational opportunities that residents can enjoy • Completed Greenbelt interactive maps and installed trail markers • Awarded a grant and coordinated more than 200 City staff and community volunteers to a build a new playground, install new signage and park benches, and repaint the bathrooms and gazebos at Hilltop Park • Implemented the Park Ranger Program to ensure the orderly, clean and safe environment for park users. • Installed rubber playground mulch at Sunbow Park through a State of California Tire Derived Product Grant • Increased Parkway Aquatic Center availability for four months through donations and grants • Implemented a partnership with the Chula Vista Learning Community Charter School to host daily physical education classes at the Parkway Community Center for 150 middle school students ;:— MNZE '+ Y ,= 2015-02-17 Agenda Packet Page 525 Strong & Secure Neighborhoods Public Safety- Prevention • Public Safety- Response Well-Planned and Maintained Communities Create and maintain safe and appealing neighborhoods where people Choose to shop, work, play and stay. 2015-02-17 Agenda Packet Page 526 r Strong & Secure Neighborhoods CnY OF t + CHULA VISTA 11111111 11 1111 - IN TIvil , I 1 1111111 1111111 Create and maintain safe and appealing neighborhoods where people choose to shop,work, play and stay. Ensure a sustainable and well maintained infrastructure to provide safe and appealing communities to live, work, and play • Constructed over 46,000 SF of sidewalk and 24 ADA ramps • Installed three street lights,four traffic signals, and three traffic signal modifications • Completed final streets for the Castle Park project. Total cost of all improvements under the HUD Section 108 Loan Program is$10.3 Million • Convened an Asset Management Program Advisory Committee to evaluate the City's infrastructure needs • Approved the Library Strategic Visioning Plan and Library Master Facilities Plan • Refurbished Fragrant Garden area at South Chula Vista Branch Library, in partnership with San Diego Native Plant Society and Chula Vista Garden Club • Updated Arts Master Plan Enhance prevention efforts and prepare communities for natural disasters and other emergencies • Launched a new Junior Lifeguard program at both Aquatic Facilities that prepares children ages 9 to 14 with a basic knowledge to becoming a first responder and how to act in and around the water safely • Conducted outreach on Ready, Set, Go Wildfire Preparedness Campaign to increase wildfire awareness and prevention • Continued collaborative outreach by Recreation and Fire departments on pool safety, WARN (Water Awareness in Residential Neighborhoods). Program has been recognized by Aquatics International as"Best of Aquatics 2014: Community Outreach" • Coordinated to provide crime and fire prevention demonstrations during after-school and winter recreation sessions Ensure adequate emergency response and post emergency recovery services to our community • Began implementation of the recommendations from the Matrix Phase II staffing report for all divisions other than Community Patrol • Increased implementation of the Advanced Life Support program, sending seven Firefighters to Paramedic School • Collaborated with the American Red Cross San Diego/Imperial Counties Chapter to audit all the Recreation Centers for opportunities to use centers as Disaster Shelters in emergencies • Implemented Automated Dispatch Process to help improve emergency response times • Approved a new False Alarm Ordinance and updated permit fees and false alarm fines • Received AB109 funds for FY 2014 which will fund equipment and overtime for special operations to address the effects of Prison Realignment • Named 101h Safest City in the United States based on FBI crime data • Deployed Civilian Police Investigators in Investigations to assist with criminal cases << 2015-02-17 Agenda Packet Page 527 Connected Community Community Engagement • Enrichment Programming Promote diverse opportunities that connect + community and foster civic pride through comprehensive communication strategies, and cultural, educational, and recreational programming. 2015-02-17 Agenda Packet Page 528 Connected Community '�"MY OF CHULA VISTA Programming Community Engagement Enrichment Promote diverse opportunities that connect community and foster civic pride through comprehensive communication strategies, and cultural, educational & recreational programming. Encourage residents to engage in civic activities • Implementing new branding campaign for the City of Chula Vista • Redesigned City website,to launch during FY15 • Sponsored HarborFest which attracted more than 10,000 participants • More than 500 print and broadcast news articles/features on Chula Vista have appeared in the media • Coordinated 60+special events • Published interactive community calendar listing more than 20 local events monthly • Distributed monthly Community Connection newsletter to 3,500 recipients • Recognized in local media for Twitter presence. Nearly 1,500 followers each on Facebook and Twitter • Assisted over 600 volunteers that removed litter and graffiti at the Otay Recreation Center and pulled invasive plants and planted native plants at Rice Canyon for the Beautify Chula Vista Day • Developed handbook and training for staff liaisons to boards and commissions to standardize processes, and provide information on legal requirements and best practices for open meetings • Established the Districting Commission to select and recommend four City Council districts to be used in future City elections • Ran smooth elections for four offices and two ballot measures in the June 2014 elections • Awarded major grant from Chula Vista Charitable Foundation for "Paths to Civic Engagement" and convened the first of two popular civic engagement workshops on Chula Vista's image and reputation Provide opportunities that enrich the community's quality of life • Enhanced the "Rec & Read" Critical Hours Program with recreational opportunities and homework help at Heritage Center • Acquired grants funds to provide a girl's only basketball camp • Created "Kindergarten Boot Camp" school readiness program in cooperation with CVESD • Assisted upgrade of Congregational Towers and Kiku Gardens affordable housing projects through bond financing • Attracted 100 people per event with summer movie nights in the park • Hosted 380 people for the fifth annual Snores'n' S'mores community camp out at Montevalle Recreation Center • Awarded Low Income Housing Tax Credits for the construction of 33-units of affordable rental housing on Landis • Partnered with the San Diego Children's Museum to provide museum passes that can be checked out for free. • Re-instituted citizenship classes with grant funds • Coordinated City's Performing and Visual Arts Grant program, 21 organizations received over$70,000 for local arts projects and performances '�•�.� � ' .i � �' iii, �,}e�►,� L,�1 _ � �A is f r 2015-02-17 Agenda Packet Page 529 x AL � x r Thank you for the support of our shared vision of a vibrant and sustainable quality of life for Chula Vista residents and businesses. Operational Economic Healthy Strong and Secure Connected Excellence Vitality Community Neighborhoods Community To learn more about the City of Chula Vista or the Strategic Plan please visit: www.chulavistaca.gov 2015-02-17 Agenda Packet Page 530 City of Chula Vista CTY CHUILAVISTA Staff Report File#: 14-0636, Item#: 12. CONSIDERATION OF APPROVING A DESIGN/BUILD AGREEMENT WITH WEST COAST GENERAL/CONDON JOHNSON, INC. CONSTRUCTION, AMENDING THE FISCAL YEAR 2014/2015 BUDGET, ESTABLISHING THE TELEGRAPH CANYON ROAD EROSION REPAIR PROJECT, AND APPROPRIATING $1,800,000 FROM THE GENERAL FUND RESERVES THEREFOR RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE DESIGN/BUILD AGREEMENT WITH WEST COAST GENERAL/CONDON JOHNSON, INC. CONSTRUCTION FOR THE DESIGN AND CONSTRUCTION OF A SECANT PILE WALL IN TELEGRAPH CANYON; AMENDING THE FISCAL YEAR 2014/2015 CIP BUDGET AND ESTABLISHING A NEW CAPITAL IMPROVEMENT PROJECT "TELEGRAPH CANYON ROAD EROSION REPAIR (DR199)"; AND APPROPRIATING $1 ,800,000 FROM THE GENERAL FUND RESERVES TO CIP DR199 (4/5 VOTE REQUIRED) RECOMMENDED ACTION Council adopt the resolution. SUMMARY Over the years, the embankment along the north side of Telegraph Canyon Road between Paseo Ladera and Medical Center Drive has sustained severe erosion and is now jeopardizing the integrity of the street improvements and associated facilities. The limits of the erosion is now within approximately 5 feet of a wooden fence at the edge of the street right-of-way with near vertical slope faces up to 10 feet in height. The City's geotechnical/hydraulic consultant investigated this location and recommended construction of a buried secant pile retaining wall along the length of the eroding embankment. This resolution will authorize staff to retain a contractor, using the design build contract process, to complete the design and construct a secant pile wall along Telegraph Canyon Road as well as authorize appropriations for this project. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 1 categorical exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines. Thus, no further environmental review is necessary. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION Telegraph Canyon Channel was constructed between 1976 and 1984 to divert and contour the natural channel and allow the widening of Telegraph Canyon Road. Existing improvements along the City of Chula Vista Page 1 of 3 Printed on 2/12/2015 2015-02-17 Agenda Packet powered by Le9age 531 File#: 14-0636, Item#: 12. northern side of Telegraph Canyon Road include: three westbound asphalt concrete (AC) pavement lanes; a bicycle lane; concrete curb and gutter; 7 foot wide ornamental landscaping strip; 8 foot concrete sidewalk; another 5 to 7 foot wide landscaped area; a wooden fence and a variety of underground utilities. The top of the channel embankment is now only five feet away from the fence at the most critical point. Upon discovery of the severity of the erosion, City staff solicited Ninyo & Moore and Rick Engineering Company (Consultants), to perform a geotechnical investigation. Ninyo & Moore recommended a buried secant pile wall (secant wall) 760 feet long, 2 feet wide and 26 feet deep be constructed within the Right of Way (ROW) adjacent to the area of channel erosion. The results of their investigation were summarized in two geotechnical reports dated March 8, 2013 and November 4, 2013. Additionally, they used the hydrology report prepared by Rick Engineering dated July 31 , 2014 in their analysis/recommendation. The investigation forecasted that future rain events are anticipated to exacerbate the existing conditions and increase the potential for additional embankment failure. Due to irrigation runoff, the Telegraph Canyon Channel has continuous low flows year round. Gradually, the low flow has been meandering south of its original constructed path in the middle of the channel and is now along the foot of the Telegraph Canyon Road embankment. The low flows are eroding the toe of the embankment causing the upper portion to crumble down during the rainy season's higher flow. This cycle has continued over the years and has now reached a point where further erosion will compromise existing facilities (fence, sidewalk, roadway, utilities, etc.). Armoring the channel with rock would have an estimated cost of over $6 Million due to extensive mitigation requirements when working in an active channel. The consultant's proposed alternative is a buried secant pile wall (see attachment). The buried secant wall is a series of overlapping drilled piles installed between the channel and Telegraph Canyon Road paralleling both. Currently enough space exists within the Right of Way and away from the eroded slope face to install the wall. Staff concurs that the secant wall is a better solution. Installing the secant wall eliminates the need to work in the channel and is estimated to cost $1,800,000. Because installation of the secant wall will not be possible once the eroded face reaches the fence, this alternative is very time sensitive. To expedite the project, staff chose the design build delivery method. On December 19, 2014, the Department of Public Works Engineering Division issued a Request for Proposals (RFP) for the Secant Pile Wall Project in Telegraph Canyon pursuant to § 2.57 of the City's Municipal Code. The following Design Builders (D/B) were sent request for proposals; Malcolm Drilling, West Coast General/Condon Johnson Company Inc., Hayward Baker Company, JC Baldwin Construction, Western Foundations and McMahon Construction. On January 13, 2015, three of the qualified companies responded to the RFP. Following a review of the proposals, West Coast General/ Condon Johnson Inc. was selected as the respondent who best met the design, monetary, and time criteria of the project with whom City could negotiate an agreement. As part of D/B's proposal, D/B submitted a "Not to exceed Gross Maximum Price" of the Project in the amount of $1 ,758,244.12 ("Estimated Cost"/"EC") including $83,202 project contingency and $73,374 for the design and construction documents. Following City's approval of 100% Construction Documents ("CD's), D/B shall submit a Guaranteed Maximum Price ("GMP"), at which time staff may return to Council if the GMP exceeds $1 ,800,000. City of Chula Vista Page 2 of 3 Printed on 2/12/2015 2015-02-17 Agenda Packet powered by Le9age 532 File#: 14-0636, Item#: 12. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS This project will support the City's Strategic Plan as it seeks to enhance the City's Strategic Goals of Healthy Community by controlling the erosion and creating a safe environment and roadway within Telegraph Canyon Road. CURRENT YEAR FISCAL IMPACT Approval of this resolution will result in the establishment of a new CIP, DR199 and appropriate $1 ,800,000 from the General Fund Reserves to DR199. This new CIP project will allow the City to enter into a design build agreement to construct a secant pile wall to protect Telegraph Canyon Road from further erosion. As reported in the audited Financial Statements, the unassigned fund balance (operating reserves) for the City's General Fund totals $14.3 million as of June 30, 2014. The appropriation of$1 .8 million for this project will reduce the operating reserves from $14.3 million to $12.5 million, which is approximately 9.0% of the fiscal year 2015 amended budget. ONGOING FISCAL IMPACT After completion of the project, annual routine maintenance will be required. ATTACHMENTS 1 . 50% Design Document 2. RFP 3. Design Build Agreement 4. Schedule of Values 5. 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INTRODUCTION................................................................................................................1 IISCOPE OF SERVICES ......................................................................................................2 A. Project Control (All Phases) ------------------------------------------------------------------------------------------2 B. Design Phase Services ...................................................................................................2 C. Construction Phase Services..........................................................................................4 D. Operations and Startup Phase Services..........................................................................5 III DESIGN BUILDER SELECTION PROCESS....................................................6 IV REQUEST FOR PROPOSALS SCHEDULE.....................................................7 V PUBLIC DISCLOSURE..............................................................................7 VI SUBMITTAL REQUIREMENTS..................................................................7 VII CONTRACT TERMS AND CONDITIONS......................................................9 ATTACHMENT A — SAMPLE DESIGN BUILD AGREEMENT ATTACHMENT B —PLANS & SPECIFICATIONS ATTACHMENT C — SAMPLE SCHEDULE OF VALUES 2015-02-17 Agenda Packet Page 545 The following Request for Proposal (RFP) pertains to the design, construction and installation of a secant pile wall in the Telegraph Canyon drainage. Firms with design build experience are being solicited to present proposals for review. Based upon the submitted information, qualified candidates will be interviewed and a responsive proposal may be considered for the project as permitted by the City's Design-Build Ordinance. I. INTRODUCTION The City of Chula Vista is circulating this RFP to firms qualified to provide design build services to the City with: design services,value engineering, construction management for the design and installation of a secant pile wall in the Telegraph Canyon drainage in the City of Chula Vista. The City currently has a proposed budget of$ 800,000 to $1,200,000 for design and construction phases of the project. All DBT members shall be licensed and registered with the State of California, as required. This RFP document describes the typical elements of a project, the required scope of services, the selection process, and the minimum information that must be included in the proposal submittal. This RFP is intended to allow for the following scenario: • DB will combine work efforts with the City's current management team, RBF Consulting,that has previously prepared the planning and/or conceptual documents. This RFQ does not commit the City to award a contract, to pay any costs incurred in the preparation of submittals to this request, to procure, contract for services and supplies or to select the low bidder. The City reserves the right to accept or reject any or all submittals received as a result of this request,to negotiate with any qualified source,or to cancel in part or entirely the RFP. The City reserves the right to reject any or all proposals in the City's sole discretion at any time prior to an award. II SCOPE OF SERVICES The DBT shall design and install the secant pile wall to comply with all the applicable federal, state and local laws, including the American's with Disabilities Act-Accessibility Guidelines (ADAAG) and Title 24 of the California Code of Regulations. 2015-02-17 Agenda Packet j Page 546 A. Project Control (All Phases) The DBT shall develop and implement the following Project Management Plan and Procedures: I. Monthly project status reports (including schedule and budget updates) 2. Coordination/interface with the City and its other consultants/contractors 3. Progress meetings 4. Interface and communicate with other agencies, as directed by the City. 5. Vendors and subcontractors management 6. Document control 7. Schedule and budget control 8. Quality assurance and quality control B. Design Phase Services Utilizing the City's required standard specifications,facility program requirements,Federal, State and local laws,and City performance and design criteria,approved planning documents (if available), and reports that will be identified in the Design/Build contract, for a typical project, the DBT will: 1. Prepare, submit and receive City approval for any site-specific planning/environmental documents, if required. 2. Prepare design development and construction drawings and specifications suitable for obtaining City approval and issuance of permits to allow for construction. 3. Complete the design for all elements of the projects,including but not limited to: landscape architectural,civil engineering,structural engineering and any specialty consulting area. 4. Incorporate the requirements of permitting agencies as may become apparent in the course of design. The DBT shall apply for and secure all permits and provide all necessary reports, studies and support required to obtain all required permits. The existing landscape irrigation system uses reclaimed water, a permit from and inspection by Otay Water District(OWD)/County Department of Environmental Health(DEH)is a requirement of this project. In addition,the DBT shall research Air Pollution Control District and noise abatement requirements, along with any hazardous materials management requirements of NFPA,Cal-OSHA and the City Fire Department. The DBT shall develop all appropriate environmental plans, including but not limited to, an air pollution control plan, a noise abatement plan, a hazardous materials management and sensitive habitat plan. The DBT shall submit and obtain approval of an application for Storm Water Pollution Prevention Plan to the appropriate authority. If required, the DBT shall incorporate any 2 2015-02-17 Agenda Packet Page 547 appropriate temporary or permanent facilities as a buffer for sensitive habitat in the design. The potential breeding season is March 15 'to September 15 '. 5. Conduct site surveys and geotechnical investigations to the extent necessary for final design. Survey and geotechnical information provided by Ninyo& Moore and Rick Engineering may be preliminary in nature and may not have sufficient accuracy or scope to support final design. 6. Prepare cost estimates throughout all phase of project development. 7. Perform a value-engineering reviews to reduce cost/and or add value, utilizing all team members and City resources. Prepare a Value Engineering(VE) Report of all considerations, recommendations and decisions. The goal is to maximize the quality of construction at a cost equal to or below the Project Budget. 8. Perform Quality Control (QC) Review of the Drawings and Specifications throughout all phases in order to correct errors and omissions and reduce the quantity of Change Orders during the course of construction. Include a detailed review of drawings and designs relative to Code Compliance Laws. Organize and publish detailed QC Reports based on all findings. 9. Establish a Critical Path Method(CPM)Construction Schedule. Monitor and update to keep the project on schedule. 10. Establish a bidding strategy. Identify, contract, and procure long lead items. Create early bid packages where applicable. 11. Provide construction cost control estimates during the design to support value engineering and constructability reviews. 12. Identify all permit requirements and prepare applications and support documents necessary for obtaining all permits. Permit fees are not a part of the cost of construction of the project and are considered a reimbursable expense. 13. The DBT shall be required to provide a cost estimate that will be used to establish a Guaranteed Maximum Price (GMP). Any savings at the end of the project will be deducted from the GMP and returned to the owner. 14. During the bidding of the Project, the DBT shall: a. Create appropriate subdivisions of work into Bid Packages that reflect the major items of work. A detailed scope of work will be included with all bid packages. b. Secure a minimum of three complete and competitive bids for each package using prevailing wage rates. 3 2015-02-17 Agenda Packet Page 548 C. Receive and resolve all RFI's and bid questions. d. Schedule meetings with the City to open and review bids for each subdivision of work. Review bids in detail. Clarify Scopes of Work, exclusions, etc. Ensure bids match DBT Scope of Work. e. Provide cost spreadsheets which compares actual bids to cost estimates. 15. Prepare draft Operations Manual Index if required, to serve as the basis for preparing the final operations Manual during the construction phase. C. Construction Phase Services The DBT shall construct the facility in accordance with the approved construction drawings, specifications and associated permits. The DBT shall also: 1. Conduct weekly team meetings with the City and appropriate design team members during the course of construction to review the status of the project. 2. Ensure the workmanship and materials provided are in accordance with the Project Specifications and the Architects meet or exceed quality construction industry standards for this type of work. 3. Provide list of required shop drawing submittals. Review shop-drawing submittals for technical and code compliance. Provide copy to the City for review and comment. 4. Provide resident engineering, contract administration, and inspection staff, including specialists necessary for the functional, safe, on budget and on- schedule completion of the Project, starting with the issuance of a Notice to Proceed from the City and extending through issuance of Notice of Completion and Acceptance. City staff will also perform inspection to verify compliance with the plans and specifications, permits and contract documents. 5. Ensure construction compliance with applicable local, state, and federal codes, environmental permit requirements, and construction mitigation documents and enforcement of the Contract Documents. 6. Purchase and install all necessary equipment and witness all factory and field installed components,equipment and system testing as required by the proj ect Contract Documents. 7. Submit the proposed QA/QC Plan to the City for review. The Plan shall not be implemented without written approval of the City. 8. Provide surveying, and other contracted services as required completing projects construction. Coordinate City contracted testing and inspection services during the course of construction. 4 2015-02-17 Agenda Packet Page 549 9. Develop, implement and manage a construction phase Quality Assurance/Quality Control (QA/QC). The Plan shall include but not be limited to; 1)a statement and definition of QA/QC goals;2)an identification of QA/QC criteria and elements; 3) development of the project QA/QC implementation plan;4)development of the QA/QC materials,components, equipment and system testing plans; and, 5) enforcement of the plans and specifications. 10. Be responsible for preparing the Critical Path Method (CPM) schedule utilized during the project construction and startup activities. Use Microsoft Project scheduling software or a similar industry standard application consistent with the current City reporting system. 11. Develop a proj ect-specific Plan for defining,tracking and reporting cash flow activity requirements and submit such plan to the City for review and approval prior to implementation. 12. Develop a project-specific Change Order Administration Plan for review and approval by the City. Upon written approval of the Plan, the DBT shall initiate implementation. The Plan shall define the required Change Order procedures, including requirements for requesting, developing, approving, and filing. 13. Implement and maintain an internal records management and document control system as required to support project operations. The DBT shall provide records management and document control information in a manner consistent with an industry standard system . 14. The DBT shall develop an on-site Project Safety Plan for review and approval by the City. The DBT shall administer and enforce the City approved on-site Project Safety Plan for the Project. The DBT shall monitor and enforce construction responsibility for safety and health issues relating to all workers at the Project Site. This shall include workers in direct employment to the Contractor and workers involved in a subcontracting, equipment supply, or any other project-related oral or written arrangement with the DBT. 15. Report accidents,claims, and other on-going safety related issues to the City in a manner consistent with Citywide reporting systems. 5 2015-02-17 Agenda Packet Page 550 D. Operations and Startup Phase Services 1. The DBT shall prepare,submit for City review and written approval a Project Startup and Testing Plan for the Project. The DBT shall fully implement the plan. 3. The DBT shall supervise, manage, and coordinate all project mobilization and testing activities for all designed components. 4 operation .,�tenanee r, all f r e"ipfnefft pt+r-^ installed by DBT-. 5. 44te DBT- shall l et:t .i:eeiyss of pt:,; and testing to the !''4y 6. The DBT shall coordinate and expedite record drawings and specifications. 7. The DBT shall prepare final accounting and close out reports. 8. Post Construction: DBT shall coordinate an 11-month walk through of the Project to review guarantee/warranty items. DBT shall coordinate all corrective work with the responsible parties and the City. The DBT shall report to the City all guarantee/warranty disputes. The DBT shall proceed to resolve such disputes after having submitted to the City for review and approval the DBT's approach for obtaining resolution of the dispute. III DESIGN BUILDER SELECTION PROCESS Candidates will compete first on the basis of compatibility, experience, design talent, past performance,resources,construction and management skills. Selected DB may be requested to coordinate and negotiate with a City appointed design team that will be involved in the final design of the project. Contracts will be awarded in accordance with the Chula Vista Municipal code and the Design/Build ordinance as outlined in Section .257 of the Chula Vista Municipal Code. Selection of the low bidder is not a requirement of this project. IV REQUEST FOR PROPOSALS SCHEDULE The following schedule applies to the solicitation,receipt and evaluation of the SOQ and the selection of the DB. This RFP schedule is subject to modification in the City's sole discretion: Advertise and Issue RFP December 19, 2014 SOQ Submittals Due January 13, 2015 City may Interview Qualified Candidates January 15, 2015 City Council Certifies DB January 27, 2015 6 2015-02-17 Agenda Packet Page 551 V PUBLIC DISCLOSURE Under the California Public Records Act Under the California Public Records Act (California Government Code Section 6250 et seq.)records in the custody of a public entity generally have to be disclosed unless the information being sought falls into one or more of the exemptions to disclosure set out in Government Code Sections 6254 through 6255.The cover letter of the submittal should contain a paragraph that states whether or not DBT believes that its submittal does or does not contain information that falls into one of the exemptions of Government Code Sections 6254 through 6255 and whether or not DBT considers such information to be confidential. In the absence of a declaration, City may be obligated to disclose proposal to any party that requests it. Regardless of assertions of confidentiality, proposal contents may still be disclosed if City,or a court with jurisdiction,determines that such proposal is a public record requiring disclosure. VI SUBMITTAL REQUIREMENTS The submittal deadline is Jttly 9, 2009 January 13, 2015 no later than 2:00 P.M. (PST) at the City of Chula Vista, PublicWorks and Engineering Department 276 Fourth Avenue Building 200 Chula Vista, CA 91910 1. Three (3) single-spaced copies, no more than 20 pages plus attachments in length excluding exhibits and appendices, are required for submittal. Submittals should be as brief as possible,while adequately describing how the DBT will approach the design build work program. Proposal creativity is encouraged, but extravagance in proposal style and format is discouraged. Statement of Qualifications (SOQ) shall include: A letter of interest Summary of Qualifications Organizational Chart for project Team Design Build fee structure and rates Resume (of key DB members) Design Build experience Client References Schedule of Values Project Schedule with start date 2-16-15 2. The submittal should focus on previous experience with public works projects as well as knowledge of issues germane to civil engineering projects, a demonstrated ability to implement creative solutions to complex planning issues and a demonstrated ability to complete complex tasks within the 7 2015-02-17 Agenda Packet Page 552 parameters of a fast-paced performance schedule and within the terms of the contract. 3. The submittal shall also provide the name, title, address, and telephone number of individual(s)with authority to negotiate for the candidate and also who may be contacted during the period of submittal evaluation. 4. Statement of the DBT's ability, if selected, to enter into a City contract with the City of Chula Vista,and ability to avoid conflicts of interest on this or any other public or private projects. 5. Other Information a. Description of insurance coverage for prime respondent and co- venture partner(s) (types of coverage and policy limits, deductible, exclusions, and outstanding claims). b. Description of in-house resources for prime respondent and co- venture partner(s)(i.e.,computer capabilities, software applications, model protocol, and modeling programs, etc.) C. Respondents should provide, on a strictly confident basis, the following information: 1) Copy of financial statements submitted to the IRS for the last three years, (when requested, provide prior to award) 2) List of projects completed in the last year 3) List of projects currently under development,or construction with status, development schedule and financial commitment 4) List of projects currently involved in litigation or unresolved claims for the contract 7. Incomplete submittals,incorrect information,or late submittals may be cause for immediate disqualifications. VII CONTRACT TERMS AND CONDITIONS City retains the right to reject any or all submittals. All respondents should note that the execution of any contract pursuant to this RFP is dependent upon the approval of the Chula Vista City Council in its sole discretion. Selection is also dependent upon the negotiation of a mutually acceptable contract with the successful respondent. The contract shall be prepared on the City's Design Build Agreement (DBA)document format. The form of compensation shall be negotiated. The City reserves s 2015-02-17 Agenda Packet Page 553 the right to propose a variety of compensation structures,including: 1)time and materials not to exceed, 2) guaranteed lump sum, and 3)percentage of project costs. City reserves the right on a project specific basis to request insurance including but not limited to increased limits of Liability coverage, CA admitted carriers A.M. Best rated no less than A V. Additional Insured Endorsement which does not exclude Completed Operations, Excess Liability, Pollution Liability, E&O / Professional Liability Extended Reporting Period excess of 2 years, Completed Operations Coverage of up to ten years, Contractor Controlled or"Wrap Up" Insurance Program, Bonds. Each submittal shall be valid for not less than one hundred and twenty(120)days from the date of receipt. The firm(s) selected to perform the work described in this RFP will be required to provide minimum evidence of insurance as follows: 1. Commercial General Liability insurance, ISO CG 0001 Occurrence form, with limits of not less than$3,000,000 per occurrence per project. Policy to include endorsement naming City of Chula Vista, its officers, officials, employees and volunteers as Additional Insured against all liability of the DB,its subcontractors,and its authorized representatives,arising out of,or in connection with, the performance of work under the contract with the City. Policy is to be endorsed to state it is Primary to any other insurance available to the City of Chula Vista and that insurer will provide THIRTY (30) days written notice to the City Clerk of the City of Chula Vista of cancellation or material change. 2. Commercial Automobile Liability Insurance,ISO CA 0001 form,Any Auto code, with a combined single limit of not less than $1,000,000,_covering bodily injury and property damage for owned, non-owned and hired automobiles, and name the City, its officers, officials, employees and volunteers as additional insured's. 3. Workers' Compensation and Employer's Liability insurance, for all employees who are normally engaged in Work at the Project Site, with Statutory Limits for Workers' Compensation and not less than Employer's Liability limit for Bodily injury by Accident$1,000,000,each accident Bodily Injury by Disease $1,000,000, Bodily Injury by Disease $1,000,000. A Waiver of Subrogation shall be endorsed to the policy naming the City of Chula Vista. 4. Professional Liability insurance shall be required of said firm for professional liability or errors and omissions insurance with a per claim limit of not less than $3,000,000 for services performed by the Design contractors and any subcontractors performing design services. The policy shall contain an extended reporting period of not less than 2 years. 9 2015-02-17 Agenda Packet Page 554 5. Builder's Risk Property Insurance may be provided by the City. The limit is to reflect full replacement cost of hard cost construction values. Perils are to be all risk excluding Earthquake and Flood. Perils are to include any transportation risk but is to exclude any equipment, machinery, tools, or property of similar nature, owned, rented or used by DB or contractors. 6. Other Provisions. Prior to beginning Work under the Agreement, each and every contractor of any tier shall furnish Certificates of Insurance satisfactory to the City. All such certificates will contain at least the following provisions: a. Thirty (30) days written notice to the City prior to any cancellation, non-renewal or materials reduction in coverage. b. The words"will endeavor'' and"but failure to mail such notice shall impose no such obligation or liability of any kind upon the company, its agents or representatives" will be deleted from the certificate. C. Throughout the life of the Agreement, each and every contractor of any tier shall pay for and maintain in full force and effect, with an insurer authorized by the California Insurance Commissioner to do business in the State of California, the policies evidenced herein. The City reserves the right to modify the insurance requirements or to substitute project insurance during contract negotiations. Bonds may be required for individual projects as required by City Policy. End of Request for Proposals 10 2015-02-17 Agenda Packet Page 555 PART 2 SPECIAL PROVISIONS-TECHNICAL 2-1 WORK TO BE DONE The general scope of the project is the installation of a secant pile wall along the Telegraph Canyon drainage . The project includes but is not limited to; mobilization,traffic control, survey,sampling and testing of poured in place materials, erosion control, clearing and grubbing, replacement of a 18"RCP drain, installation of approximately 19,200 sqft. of pile wall,removal and replacement of 780' of split rail fencing and 6200sgft. of sidewalk,5,800 sqft. of soil removal and replacement,tree salvage and relocation,existing irrigation removal,replacement and testing,approximately 2000sgft of hydro-seeding and any measures necessary to avoid disturbances during the bird breeding season along the adjoining area in Telegraph Canyon. The work to be done includes all labor,material,equipment,transportation,interaction with staff and scheduling necessary for the project as described in these documents. The completed projects will be turn-key and work in general includes, but is not limited to the following: an all new installation as outlined in, but not limited to the specifications listed below, the existing unit removal which will include protection of related components,disposal of removed appurtenances,installation of the new components,new process piping,testing and training of staff, new control system, and construction of all appurtenances and other work as may be necessary to render the above improvements operational when the project is considered complete. The items are to be constructed or finished and installed in a complete and workmanlike manner,in accordance with the plans, "Greenbook 2006" Standards and specifications, 2008 Regional Standards, 2008 Chula Vista Standard Special Provisions and 2002 Chula Vista Construction Standards. Bidders must have a valid certification from the California State Contractors License Board in A. No other single license classification will be accepted. Such other items or details not mentioned above, that are required by the Manufacturers Recommendations, Specifications, or these Special Provisions, shall be performed, placed, constructed or installed as required for turn-key project. 11 2015-02-17 Agenda Packet Page 556 ATTACHMENT A SAMPLE DESIGN BUILD AGREEMENT 12 2015-02-17 Agenda Packet Page 557 ATTACHMENT B PLANS, SPECIFICATIONS AND SPECIAL PROVISIONS 13 2015-02-17 Agenda Packet Page 558 ATTACHMENT C SCHEDULE OF VALUES, TRAFFIC CONTROL, CSWMP AND DISCLOSURE FORM 14 2015-02-17 Agenda Packet Page 559 DESIGN BUILD AGREEMENT FOR SECANT PILE WALL PROJECT FOR TELEGRAPH CANYON THIS Agreement shall be for the design and construction of a secant pile wall for Telegraph Canyon project and the payment of permitted costs therefore("Agreement"). This Agreement is made and entered into this ],by and between THE CITY OF CHULA VISTA,a municipal corporation("City"),and West Coast General/Condon Johnson&Associates Inc.,a Joint Venture [AND PLACE OF INCORPORATION] ("Design Builder or D/B"). City and DB,when referenced herein,may be referred to individually as"Party"and collectively as"Parties." This Agreement is entered into with reference to the following facts: RECITALS 1. The segment of Telegraph Canyon Charnel between Pasco Ladera and Medical Center Drive is a lined grass channel that was constructed between 1976 and 1984 as part of the diversion of Telegraph Canyon Channel to allow for the widening of Telegraph Canyon Road associated with the construction of housing developments within the area;and 2. Staff recently noticed that the embankment along the westbound lanes of Telegraph Canyon Road between Pasco Ladera and Medical Center Drive has sustained severe erosion which is now jeopardizing the integrity of the street improvements and associate utilities;and 3. Upon recognizing the progression and the severity of the erosion, City Staff solicited the expertise of Ninyo and Moor and Rick Engineering Company (Consultants), to perform geotechnical and engineering investigations;and 4. The Consultants investigation forecasted that future rain events are anticipated to exacerbate the existing conditions, further increasing the potential for additional embankment failure and potentially eroding some segments of Telegraph Canyon Road;and 5. The Consultants recommended a secant pile wall (Secant Wall) to be constructed within the ROW to protect Telegraph Canyon Road;and 6. As part of that effort,on December 19,2014,the Department of Public Works,Engineering Division,issued a Request for Proposal(RFP),pursuant to §2.57 of the City's Municipal Code,to design and construct a secant pile wall("Project")to qualified Design-Build firms;and 7. Following interviews of three(3)respondents on January 22,2015,DB was selected as the respondent who best met the design,monetary,and time criteria of the project with whom City could negotiate an agreement; and 8. As part of DB's proposal,DB submitted an estimated cost of the Project in the amount of one million,seven hundred fifty-eight thousand,two hundred forty-four dollars and twelve cents($1,758,244.12)("Estimated Cost"/"EC");and 9. Following City's approval of 90%Construction Documents("CD"),DB shall submit a guaranteed maximum price("GMP"),not to exceed the Estimated Costs,for which the Project shall be designed and constructed;and 10. DB shall complete the Project,as a public improvement,according to plans and specifications approved by City,for an amount not to exceed the GMP. 2015-02-17 Agenda Packet Page 560 NOW THEREFORE,in consideration of the recitals,mutual obligations of the Parties,the covenants and conditions herein,and for other good and valuable,the sufficiency of which is hereby acknowledge,the Parties agree as follows: ARTICLE L DEFINITIONS ADA: The Americans with Disabilities Act of 1990 and any amendments thereto. Acceptance: Final approval by the City Inspection Team following the Final Inspection that Project Improvements are complete and work required on the Punch List has been finished. As-Builts: Project Record Documents that are the Contract plans modified from the original concept of the design to reflect the actual product built. CEQA: California Environmental Quality Act. Calendar Day(s): All days of the week,holidays and weekends included. Change Order: A written order,approved by City,authorizing a change in the work to be performed. City: The City of Chula Vista.Unless specifically provided otherwise,whenever this Agreement requires an action or approval by City,that action or approval shall be performed by the City representative designated by the Agreement. City Council: The City Council of the City of Chula Vista. City's Project Administration Costs: Charges that City incurs to:(i)administer the acquisition of the Property, (ii)review and approve the plans and specifications for the project improvements,and(iii)inspect the project improvements during construction,until completion and Acceptance of the Project. Contract Documents: Including,but not limited to:Contract Addenda,Notice Inviting Bids,Instructions to Bidders,Bid(including documentation accompanying Bid and any post-bid documentation submitted prior to Notice of Award),the Bonds,the general conditions,permits from other agencies,the Special Provisions,the Plans, Standard Plans,Standard Specifications,Reference Specifications,and all modifications issued after the execution of this Agreement. Contract Time: The number of Calendar Days permitted under this Agreement for DB to achieve Substantial Completion. Defective Work: All work,material,or equipment that is unsatisfactory,faulty,incomplete,or does not conform to the Contract documents is defective. Design Build Team(D/BT): Members of the team assembled by the primary contractor and proposed in the Statement of Qualifications(SOQ) .Exhibit A Estimated Cost: The total cost of the Project as estimated in preliminary cost estimates as shown in Exhibit A. Extra Work: Any City additions,modifications,or deletions to work or DB obligations under this Agreement not within the original Scope of Work contemplated by this Agreement. Final Completion: The point at which the last of the following has occurred:(1)recordation of a Notice of Completion for the Project;(2)acceptance of the Project by the City;(3)submission of all documents required to be supplied by DB to City under this Agreement,including but not limited to As-Built Drawings,warranties,and operating manuals;and(4)and delivery to City of a Certificate of Completion duly verified by DB. Greenbook: The most recent edition of the Standard Specifications for Public Works Construction(including any City of Chula Vista standard special provisions). Guaranteed Maximum Price("GMP"): The maximum compensation to which DB may be entitled for the performance of all Services,Work,and obligations and the satisfaction of all conditions under this Agreement, 2 2015-02-17 Agenda Packet Page 561 which amount shall include all authorized costs for labor,equipment,and material to design and build a fully functional Project in accordance with all applicable rules,regulations,and laws. Hard Construction Costs: Direct construction costs incurred in performing the work,including taxes,delivery and installation. Hard Construction costs shall not include DB markup,handling fees,overhead,or other charges, except as otherwise set forth in this Agreement. Hazardous Materials: Hazardous waste or hazardous substance as defined in any federal,state,or local statute, ordinance,rule,or regulation applicable to the Property,including,without limitation the Comprehensive Environmental Response,Compensation,and Liability Act of 1980,as amended(Title 42 United States Code sections 9601-9675),the Resource Conservation and Recovery Act(Title 42 United States Code sections 6901- 6992k),the Carpenter Presley-Tanner Hazardous Substance Account Act(Health and Safety Code sections 25300- 25395.15),and the Hazardous Waste Control Law(Health and Safety Code sections 25100-25250.25). "Hazardous Materials"shall also include asbestos or asbestos containing materials,radon gas,and petroleum or petroleum fractions,whether or not defined as hazardous waste or hazardous substance in any such statute,ordinance,rule,or regulation. Holiday: The City-observed holidays. Law: All Federal,State,or local laws,regulations,ordinances,and/or policies. Milestones: Dates shown on the Project Schedule by which DB shall complete major tasks either during design or construction of the Project. NEPA: National Environmental Policy Act. Notice to Proceed: City's written notice authorizing DB to commence Work and/or Services on the Project. Notice of Termination: A written notice from City to DB terminating the Agreement in accordance with Article XXVII. Project Site: The property located on the north side of Telegraph Canyon Road between Pasco Ladera and Medical Center Drive and further described in Exhibit A",attached. Reimbursable Costs: All direct costs,including labor,materials,permit fees,insurance and bonds,general conditions,overhead and profit.Services: Professional services,including design and construction management of the Project that are required to design and construct the Project in accordance with the Contract Documents. Services does not include Work. Substantial Completion: That stage in the progress of the construction when all Work on the Project is sufficiently complete in accordance with the Construction Documents, so that City can fully utilize entire Project;Substantial Completion shall further mean that all goods,services and systems to be provided under the terms and conditions of the Construction Documents are in place,have been initially tested,and are operationally functional,subject only to final testing,balancing and adjustments and normal Final Completion punch list work. Title 24: California Building Standards Code,California Code of Regulations,Title 24. Work: All labor,materials,supplies,and equipment that are necessary to construct the Project in accordance with the Contract Documents.Work does not include Services. Working Day(s): Monday through Friday,excluding City holidays. ARTICLE IL SCOPE OF THE AGREEMENT 2.1 General. Except as expressly provided in this Agreement,DB shall design and construct the Project in accordance with all the terms and conditions of this Agreement,approved Plans and Specifications,and the timeframes established by the Project Schedule,attached as Exhibit A",delivering a complete and functional Project within the Contract Time for an amount not to exceed the GMP. ARTICLE III. TERM 3 2015-02-17 Agenda Packet Page 562 3.1 Term of Agreement. This Agreement shall be effective on the date it is executed by the last Party to sign the Agreement following City Council approval by Resolution. The term of this Agreement will extend from the date of execution until satisfaction of all terms and conditions herein,unless this Agreement is earlier terminated. ARTICLE IV.GENERAL PROJECT PERFORMANCE OBLIGATIONS 4.1 Standard of Care. Throughout the performance this Agreement,performed under this Agreement,DB agrees that all Services and Work provided as part of this Agreement shall be performed in accordance with the standards customarily adhered to by experienced and competent professional architectural,engineering, landscape architecture,and construction firms using the degree of care and skill ordinarily exercised by reputable professionals practicing in the same field of service in the State of California. 4.2 Compliance with all Laws. In the performance of this Agreement,DB shall comply with all laws,including but not limited to: 4.2.1 All City,County,State,and Federal laws,codes and regulations,ordinances,and policies,including, but not limited to,the following: 4.2.1.1 Environmental Regulations(i.e.CEQA/NEPA). 4.2.1.2 The Americans with Disabilities Act("ADA")and Title 24 of the California Building Code.It is the sole responsibility of DB to comply with all ADA and Title 24 regulations. 4.2.1.3 The California Fair Employment and Housing Act and all other State,Federal and local laws including,but not limited to,those prohibiting discrimination on account of race,color, national origin,religion,age,sex or handicap. 4.1.2.4 The Clean Air Act of 1970,the Clean Water Act(33 USC 1368)-Executive Order 11738,and the Stormwater Management and Discharge Control-Ordinance No.0-17988. 4.1.2.5 . 4.1.2.6 DB shall comply immediately with all directives issued by City or its authorized representatives under authority of any laws,statutes,ordinances,rules,or regulations. 4.1.2.7 DB shall obtain and comply with all permits necessary top complete the Project,including,but not limited to Development Services Department permits and hazardous material permits. 4.1.2.8 �. 4.2.2 Implied Knowledge of Laws. DB shall be responsible for all amendments or updates to standards and of all amendments or updates to standards,whether local,state,or federal,and such knowledge will be imputed to DB to the extent allowed by law. 4.3 Design and Construction Standards. In the performance of the Services and Work covered by this Agreement,DB shall comply the most current versions of design and construction specifications,all of which shall be incorporated herein by this reference. 4.3.1 Standard Specifications. 4.3.1.1 Greenbook. The 2006 Edition of the Standard Specifications for Public Works Construction. 4.3.1.2 California Department of Transportation Manual of Traffic Controls for Construction and Maintenance Work Zones. 4.3.2 City Specifications. 4.3.2.1 The 2008 Edition of the Chula Vista Standard Special Provisions. 4.3.2.2 The 2006 Edition of the Regional Standards. 4 2015-02-17 Agenda Packet Page 563 4.3.2.3 The 2002 Edition of the Chula Vista Construction Standards. 4.3.2.4 The City's facility program,performance and design criteria,concept drawings,and reports. 4.3.3 Energy Conservation Standards. 4.3.4 Materials Standards. DB shall use industrial grade,not residential grade,equipment and accessories for all facets of design and construction. 4.4 Obtain City Approval. For any and all actions under this Agreement that require City approval,including, but not limited to,changes or additions to Agreement,DB shall obtain approval in writing from the designated City Representative,or when required by Law,from the City Council. DB acknowledges that approval from any individual other than the designated City Representative or City Council,where required,shall not be valid. 4.4.1 Failure to Obtain Approval. Any costs or delays resulting from or associated with additions or modifications implemented without the written authorization of the City Representative shall be borne exclusively by DB and not be grounds for an increase in GMP or Contract Time. 4.4.1.1 Emergency. In the event of an emergency,DB shall take all reasonable actions necessary to protect public health,safety or property. Such action shall not require advance City approval; however,DB shall notify the City immediately of the emergency and as soon as reasonably possible provide a written statement to the City explaining the emergency and the reasonable actions taken. Provided the emergency was not caused by or its creation contributed to by the DB,its employees,agents,or subcontractors,DB may be entitled to reasonable compensation for such actions. 4.4.2 No Release From Obligations. City approval shall be a general approval only,and such approval shall in no way release or relieve D/B of responsibility for complying with all applicable laws,codes,and good consulting,design,or construction practices. 4.5 Decision Making. DB shall make decisions with reasonable promptness to avoid delay in the orderly progress of DB's obligations under this Agreement and pursuant to the Project Schedule,attached as Exhibit «A„ 4.6 Perform Services and Work in Phases. The Services and Work under this Agreement shall be performed three(3)"Phases"in the manner and order described herein. ARTICLE V. PHASE I—DESIGN DEVELOPMENT 5.1 Design Team. City has awarded this Agreement based on the specific qualifications of DB to perform the design services required under this Agreement. All such services shall be provided by DB unless the City has approved of the use of Subconsultants in the manner identified in Article VIII. 5.2 Services. In Phase I,DB shall perform Services including,but not limited to,the following: 5.1.1 Project Development. Develop and refine Project requirements. 5.1.2 DDD. Prepare complete DDDs,such that the DDDs include,without limitation,the following: 5.1.2.1 Site Plans. Site plan with pertinent notes and dimensions indicating property line;existing public streets,sidewalks,curb cuts,other public improvements;and required setbacks;sefviee elemel4s. 5.1.2.2 �eaestratian w44 ns .;ate i4tiea dimensions ,.,,left,bons area 5.1.2.3 , 5 2015-02-17 Agenda Packet Page 564 5.1.2.4 dlinl ess s4o g l„a....v.sld%Gfi,rnl elemeats votes alai dimeasi.,v.s 5.1.2.5 dimensions;notes dimensions and gi4 144e 5.1.2.6 4ead and sill and Aaar to eeiling;stmetar-al elements aad assemblies; 44erior aad e*terior-wall 4nis4es;and wall a.-A Fe of assembly; 5.1.2.7 Outline specifications,written description of the secant pile wall and components including site work. 5.1.2.8 Traffic circulation and landscaping should also be indicated at this stage if applicable. 5.1.3 Code Compliance. Verify all code compliance,including building construction type,occupancy sprinkler requirements,existing,zoning and other agency conformance and ADA. 5.1.4 Submittals. Prior to proceeding with Phase II,DB shall prepare and submit the following to the City for review and written approval. 5.1.4.1 DDDs. Completed DDD. 5.1.4.1.1 Conditional Approval. In the event that City grants conditional approval,DB shall address all City comments or issues and make associated revisions in the next set of drawings developed and submitted. 5.1.4.1.2 5.1.4.2 Other Deliverables. 3D rendered images,color and material boards,reflected ceiling plans, and special system or equipment plans. ARTICLE VI. PHASE II 6.1 Phase II Services. In Phase II of the Project,DB's shall perform Services including,but are not limited to, the following: 6.1.1 Project Development. DB shall diligently prosecute the development and refinement of Project requirements and review such requirements with City; 6.1.2 Digital Documentation. DB shall prepare CD's which shall include,without limitation,the following: 6.1.2.1 Architectural plans and details,including: 6.1.2.1.1 Site plan indicating general location and nature of on-site and the necessary off-site improvements. 6.1.2.1.2 6.1.2.1.3 the..a4s roofs, na ,,,1;aeet 4 areas. 6.1.2.1.4 1. all 6.1.2.1.5 , aeoommoda4ion of ftmetional systems. 6.1.2.1.6 Typical wall sections sufficient to indicate materials openifts,and major features. 6 2015-02-17 Agenda Packet Page 565 6.1.2.2 Structural drawings including plans and sections of sufficient clarity and detail to show the extent and type of structural system and dimensions,final structural design criteria,foundation design criteria,preliminary sizing of major structural components,critical coordination clearances and applicable material lists. 6.1.2.3 Mee4apkal plans and details. 6.1.2.4 Landscape and Irrigation plan and details. 6.1.2.5 Qeeti4ea plans and details. 6.1.2.6 . 6.1.2.7 . 6.1.2.8 Technical specifications. 6.1.2.9 All other technical drawings,schedules,diagrams and specifications,to set forth in detail the requirements for construction of the Project which,at a minimum,include: 6.1.2.9.1 Information customarily necessary for the use of those in the building trades. 6.1.2.9.2 Documents customarily necessary to obtain regulatory agency approvals. 6.1.2.9.3 . 6.1.2.10 6.1.2.10.1 6.1.2.10.2 , mss- 6.1.2.11 ao stk 4 6.1.2.11.1 G f4e.-;„ lig4ga elee. i.:ea ,.a4E)4s ,,,,a;„. ,,,i ,.lase eirettit r v approximate sizes and u. 3F eomponet4s t+ans�qfmers panels swite 6.1.2.11.2 6.1.2.12 Sections through critical areas showing coordination of structural,n+ee and le elements. 6.1.2.13 Final specifications,including but not limited to,the following: 6.1.2.13.1 Anal o...eriar and 44ei4,,r ma+e4al soloed;. 6.1.2.13.2 eopA+ols,a ets and piping stow 6.1.2.13.3 6.1.2.13.4 Landscape. General description of the construction,including plan materials,plant locations,maintenance period,and irrigation systems. 7 2015-02-17 Agenda Packet Page 566 6.1.2.13.5 Play Areas. Pesefiptioi4 4play e opt,in6H(444g 44sta nosed+*o&, 6.1.2.13.6 Site Work. General description of the construction,including finishes,types of materials and locations. 6.1.2.13.7 Other. Such other documents to fix and describe the size,quality and character of the entire Project,its materials,and such other elements as shall be appropriate. 6.1.2.14 Pltffnbing drawings,ineluding laealion and"aWity of 4�4ffos,equipmepA sizes,room sizes 6.1.3 Project Sequencing. DB shall determine and establish the sequence of construction,and if appropriate,identify separate bid packages to accomplish phased construction of the Project. 6.1.4 Critical Path. DB shall prepare a detailed Critical Path Method schedule for all construction components of the Project("Detailed Construction Schedule")utilizing Microsoft Project software, showing all major milestones,bid dates for the major bid packages,commencement of construction, sequence of construction,completion of structural elements,and completion of the secant wall structures,all of which shall conform with the dates of Substantial Completion and Final Completion of Project. 6.1.5 Governmental Review. DB shall review,as needed,the CD's with the governmental authorities having jurisdiction over the Project. 6.1.6 Accounting System. DB shall provide a master accounting system and matrix on Microsoft Excel that will be updated,expanded,and provided to the City monthly as the Project develops. 6.1.7 Project Management Plan. DB shall develop and implement a Project Management Plan and Procedures including: 6.1.7.1 Project status reports. 6.1.7.2 Coordination/interface with the City and its other consultants/contractors 6.1.7.3 Initial Design kickoff meeting to be held no later than five(5)working days from the Effective Date of Agreement. 6.1.7.4 Biweekly Design and Construction meetings 6.1.7.5 Interface and communications with other agencies 6.1.7.6 Vendors and subcontractors management 6.1.7.7 Document control 6.1.7.8 Schedule and budget control 6.1.7.9 Quality assurance and quality control. DB shall establish and maintain a quality control program with appropriate reviews and independent testing procedures to ensure compliance with the Construction Documents during the construction phase. 6.1.7.10 Scheduling and cost control reports,which shall be provided monthly throughout the design phase. 6.1.8 Construction Drawings and Specifications. DB shall prepare construction drawings and specifications suitable for obtaining City-approved permits and to allow construction. 6.1.9 City Approval. DB shall submit Construction Documents and obtain City approval in writing of the Construction Documents at fifty percent(50%),seventy percent(70%),and ninety percent(90%) completion. 6.1.9.1 Condition Precedent. City approval of the Construction Documents is a condition precedent to authorization to proceed with subsequent work on the Project. 8 2015-02-17 Agenda Packet Page 567 6.1.9.2 Notification,Modification,and Resubmittal. At 50%,70%and 90%Completion,City will notify DB in writing within the timeframes established in the Project Schedule following receipt of Construction Drawings of City approval,or of request for modifications. If modifications are requested,DB shall modify and resubmit Construction Drawings for City approval. 6.1.9.3 DB Support. DB shall provide support to a City Constructability Review Team for the review of the Construction Documents at all stages of required submission. 6.1.10 Materials and Equipment Specifications. DB shall prepare technical materials and equipment specifications for pre-purchase. 6.1.11 Surveying and Testing. DB shall coordinate,perform,and complete all surveying,materials testing, and special testing for the Project at the Project site as required by this Agreement,the State Building Code,or any other law or regulation,in accordance with and considering the following: 6.1.11.1 Technical Guidelines produced by the California Council of Civil Engineers&Land Surveyors under the title"A Guide to Professional Surveying Procedures."6.1.11.2 Existing Conditions. DB shall obtain all necessary soils investigation and conduct agronomic testing required for design of the Project.The Soils Consultant shall prepare a statement that will be included in the Bidding Documents as to the nature of soils,ground water conditions and any other information concerning the existing conditions of the site. 6.1.11.2 Utilities. DB shall provide all required information for the construction or relocation of Public or private utility facilities that must be constructed or relocated as a result of this Project. DB shall file all of the required documents for the approval of authorities having jurisdiction over the Project and in obtaining the services of all utilities required by the Project. 6.1.11.3 Geotechnical Information. DB shall obtain all necessary geotechnical information required for the design and construction of the Project.The Project Engineering Geologist and/or Project Soils Engineer(qualified R.C.E.or R.G.E.)shall prepare a statement,that will be included in the Bidding Documents,to address existing geotechnical conditions of the site that might affect construction. 6.1.11.4 Additional Surveys. DB shall provide additional site surveys and geotechnical investigations to the extent that DB determines they are necessary for final design. 6.1.11.5 No Reliance. DB shall not rely on City survey information as it is intended to be preliminary in nature and may not have sufficient accuracy or scope to support final design. 6.1.12 SWPPP. DB shall prepare and incorporate into the Construction Documents a Stormwater Pollution Prevention Plan("SWPPP")to be implemented by the DB during Project construction. Where applicable,the SWPPP shall comply with both the California Regional Water Quality Control Board Statewide General Construction Storm Water permit and National Pollution Discharge Elimination System permit requirements and any municipal regulations adopted pursuant to the permits. 6.1.13Alternatives. DB shall evaluate alternative structural and construction approaches to ensure economical designs,which optimize constructability,yet meet all codes,architectural concepts,schematic designs, and standard specifications of the Project. 6.1.14 Permits. DB shall obtain general engineering permit and all ancillary permits and licenses,including but not limited to,demolition permits,improvement permits,encroachment and traffic control permits prior to start of construction 6.1.15 Updated Costs. DB shall provide updated construction cost estimates in conjunction with the submittals required in Section 6.1.9 to support Value Engineering("VE")and constructability reviews. 6.1.16Final Review and Approval of Plans and Specifications. DB shall deliver to City complete Construction Documents,including Construction Drawings,Plans and Specifications for the design and construction of the Project. City agrees to review the Construction Documents and provide City's written comments to DB within Five(5)Business Days of the date such Construction Documents are 9 2015-02-17 Agenda Packet Page 568 delivered to City in accordance with the notice provisions in Article XXVIIL Approval shall not be unreasonably withheld. If requested by City,DB shall make changes to the Construction Documents. ARTICLE VII. PHASE III.—CONSTRUCTION PHASE WORK AND SERVICES 7.1 Phase III.Work and Services. The DB shall construct the Project in accordance with City-approved plans and specifications prepared by the DB to meet or exceed all requirements of the City provided program, schematic design and the performance criteria.The DB shall: 7.1.1 Bidding. DB shall prepare and submit to the City for review separate bid packages,such bid packages shall be organized in the manner that DB determines is appropriate ensure the efficient and cost effective construction of the Project. 7.1.1.1 Competitive Bidding. DB shall competitively bid the respective bid packages for the construction of the Project. 7.1.1.2 Pre-Bid Conferences. DB shall schedule and conduct pre-bid conferences to answer questions posed by bidders. Said answers and any other information required to provide clarification to the Construction Documents during the bidding process shall be issued as written addenda and provided to all prospective bidders. 7.1.1.3 Scheduling. DB shall coordinate scheduling of bid packages,submittals. 7.1.1.4 Bid Results. DB shall submit to the City a summary of bid results for each bid package. 7.1.1.5 Bid Protests. DB shall hear and decide bid protests and shall develop and maintain bid protest procedures for that purpose. City shall be timely informed of all bid protests(prior to resolution)and the outcome of said protests. 7.1.1.6 Equal Opportunity Contracting/Nondiscrimination. DB shall not discriminate on the basis of race,gender,religion,national origin,ethnicity,sexual orientation,age,or disability in the solicitation,selection,hiring or treatment of subcontractors,vendors,or suppliers.DB shall provide equal opportunity for subcontractors to participate in subcontracting opportunities. DB understands and agrees that violation of this Subsection shall be considered a material breach of this Agreement and may result in contract termination,debarment,or other sanctions. The language of this Subsection shall be inserted in contracts between DB and any subcontractors,vendors,or suppliers. 7.1.1.7 Executing Contracts. DB shall be responsible for entering into subcontracts,in DB's own name,with the bidder who in DB's discretion and professional opinion best meets the monetary,time,and performance requirement of the Project. DB shall be responsible for ensuring that these contracts fully comply with all applicable local,state and federal laws, some but not all of which are listed below. 7.1.1.8 Additive Alternatives. DB shall require additive alternates for extended warranties in bid packages for roofing and HVAC systems. 7.1.2 Meetings. DB shall conduct meetings identified below: 7.1.2.1 Preconstruction Meeting. DB shall conduct a preconstruction meeting with its officers,agents and employees and City.The purpose of this meeting is to discuss:(i)the Agreement conditions,(ii)Scope of Work clarifications,and(iii)City policies,inspection requirements, and procedures. 7.1.2.1.1 Attendance. DB shall ensure that the preconstruction meeting is attended by DB's construction contractor,project manager,all DB's major subcontractors,the City's project manager and all other persons necessary as determined by DB or City. 7.1.2.2 Progress Meetings. DB shall conduct weekly progress meetings with the City and appropriate design and construction members. 10 2015-02-17 Agenda Packet Page 569 7.1.2.3 Contractor Meetings. DB shall conduct contractor meetings,as necessary,to provide technical input. 7.1.2.3.1 DB shall provide interpretation of technical specifications and drawings. 7.1.2.4 Rescheduling. Progress Meetings may be rescheduled if rescheduled meeting times are convenient for all necessary parties,and DB has given no less than five(5)Calendar Days prior written notice of the rescheduled meeting. 7.1.2.5 Minutes. DB shall take corresponding meeting minutes and distribute copies to all attendees. 7.1.2.6 Reporting. DB shall monitor and report to the City on actual performance compared to the Project Schedule,provide updated As-Builts,and verify that the latest changes to the Project,if any,have been made. 7.1.3 Construction Management. During construction of the Project,DB shall perform and be responsible for construction management,supervision,and administration services,including,but not limited to, tracking and reporting all expenses and all aspects of the construction and coordinating all construction means,methods,techniques,sequences and procedures to ensure the efficient and orderly sequence of the construction of the Project. 7.1.3.1 Resident Management. DB shall provide resident management and contract administration, including specialists necessary for the functional,safe,on-budget and on-schedule completion of the Project,starting with the issuance of a Notice to Proceed,upon receipt of final construction drawings,from the City and extending through issuance of Notice of Completion and Acceptance. City staff will perform inspections to verify compliance with the plans, specifications and contract documents. The DB resident staff shall ensure construction compliance with applicable local,state,and federal codes,building and environmental permit requirements,construction mitigation documents and enforcement of the Contract Documents. 7.1.3.2 Records Management. DB shall implement and maintain an internal records management and document control system as required to support project operations.The DB shall provide records management and document control information in a manner consistent with the City's reporting system. 7.1.3.3 Cash Flow. DB shall develop a proj ect-specific Plan for defining,tracking and reporting cash flow activity requirements and submit such plan to the City for review and approval prior to implementation. 7.1.3.4 Reporting. DB shall keep City informed of the progress and quality of the design and construction of the Project. 7.1.3.5 Documents On-Site. DB shall maintain a complete and up-to-date set of Construction Documents in the Projects field office at all times during construction that reflect all changes and modifications. 7.1.3 Site Safety, Security, and Compliance. DB shall be responsible for site safety,security,and compliance with all related laws and regulations. 7.1.3.1 Persons. DB shall be fully responsible for the safety and security of its officers,agents,and employees,City's officers,agents,and employees,and third parties authorized by DB to access the Project site. 7.1.3.2 Environmental. DB shall administer and enforce the Environmental Mitigation Monitoring and Reporting Plan for the Project,if any. In addition,DB shall report environmental issues to the City in a manner consistent with the City's reporting system. DB shall be responsible for the environmental consequences of the Project construction and shall comply with all related laws and regulations,including the Clean Air Act of 1970,the Clean Water Act,Executive Order number 11738,and the Stormwater Management and Discharge Control Ordinance No. 0-17988 and any and all Best Management Practice guidelines and pollution elimination requirements as may be established by the Enforcement Official. 11 2015-02-17 Agenda Packet Page 570 7.1.3.3 Risk of Loss. DB is responsible for the Project,project site,materials,equipment,and all other incidentals until the Project has been Accepted by the City and shall bear any costs or expenses associated with the loss thereof or damage thereto,including by theft,fire,or other casualties. 7.1.4 Public Right-of-Way. All work,including,materials testing, special testing,and surveying to be conducted in the Public right-of-way shall be coordinated with the City. 7.1.4.1 Materials Testing. DB shall pay for and coordinate with City to have all material tests within the Public right-of-way and any asphalt paving completed by City's Material Testing Laboratory. 7.1.4.2 Surveying. DB shall pay for and coordinate with City's Public Works Department all surveying required within the Public right-of-way. 7.1.4.3 Follow all Laws,Rules,and Regulations. DB agrees to follow all City standards and regulations while working in the Public right of way,including but not limited to,utilizing proper traffic control and obtaining necessary permits. 7.1.5 Traffic Control. DB shall address all traffic control requirements for the Project including,if necessary,separate traffic control plans and/or notes. 7.1.6 Abatement. DB shall develop a mutually agreed upon program to abate and minimize noise,dust,and disruption to access for parking and services at all times for adjacent business entities, residences and any endangered animal species. 7.1.7 Inspections. DB shall coordinate any and all required inspections,including special inspections,in such a manner that the progress of construction is not affected or impacted. The DB shall provide surveying,and other contracted services as required to complete project construction inspection and testing tasks. The City will provide inspection,special inspection,reinspection services,and periodic building inspections. 7.1.8 Permits. The Parties acknowledge that the construction work to be performed on the Project by DB in compliance with this Agreement is subject to the prior issuance of building,land development,and/or public improvement permits paid for and obtained by DB.In the event that City,or any other governmental agency,unreasonably refuses to issue the permit(s)necessary to authorize the work to be performed or if the permit(s)are unreasonably canceled or suspended,then DB is relieved from its obligation to construct those improvements covered by the denial of said permit(s).City shall,under such circumstances,pay DB the reasonable costs,not to exceed the amounts identified in this Agreement,for all work completed up to the date of denial of said pennit(s). All plans,specifications and improvements completed to the date of the denial,suspension or cancellation of said permit(s) shall become the property of City upon DB's receipt of payment in full as described above. 7.1.9Maintenance. DB shall ensure Project is maintained in a clean,neat,sanitary and safe condition free from accumulation of waste materials or rubbish. Until Acceptance of the Project,DB shall be responsible for on-going site maintenance,including any erosion prevention measures. Prior to Final Completion,DB shall cause to be removed from and about the Project all tools,construction equipment,machinery,surplus materials,waste materials and rubbish and deliver the site to the City in a clean,neat,sanitary and safe condition. 7.1.91 Waste Removal. Please be advised that Chula Vista Municipal Code 8.24.070 provides for an exclusive franchise for the removal and conveyance of all solid waste for hire(including recyclables)within City limits. The exclusive franchise agreement covers any hauling activity that requires the generator or their agent to pay a fee for any service connected with removing or conveying waste. The City's franchise hauler is Allied(formerly Pacific)Waste Services and may be reached at(619)421-9400. 7.1.IORequest for Information("RFI"). Parties acknowledge that the RFI process is solely for correspondence between DB and its agents;however,DB shall submit copies of each RFI to City at the within twenty-four(24)hours of receipt.DB shall issue responses to RFIs. Unless DB specifically requests a City response,City will not respond to RFIs. 12 2015-02-17 Agenda Packet Page 571 7.1.111Review and Approval. DB shall provide timely review and approve shop drawings,samples of construction materials,product data,schedule submittals,and other submittals for compliance with the Construction Documents. DB shall keep the City advised of all such matters being reviewed and approved by DB and forward copies of such documents to City for review. 7.1.12Royalties and Other Fees. DB shall pay royalties and license fees,if applicable. DB shall defend suits or claims for infringement of patent rights and shall defend and hold City and City's agents harmless from loss on account thereof 7.1.13 Provide City with a Detailed Construction Schedule(DCS)on an approved software within fourteen (14)working days after receiving Notice to Proceed with Phase III,provide updated versions of DCS on a monthly basis,and provide immediate notice of any impact on critical path items. ARTICLE VIII. SUBCONTRACTING 8.1 Subcontracting. 8.1.1 Design Services. DB shall perform or obtain the prior written consent of the City to subcontract all design services for the Project utilizing qualified,licensed and sufficiently experienced architects, engineers and other professionals(herein jointly"Design Consultants")as identified in Exhibit A DB shall not be permitted to substitute any Design Consultant unless authorized by City. 8.12 Construction Services. DB shall perform all construction on the Project utilizing subcontractors appropriately licensed by the California Contractors State License Board or other required agency. ARTICLE IX. PROJECT SCHEDULE 9.1 Proiect Schedule. DB shall perform and complete the Services and Work under this Agreement according to the timeframes set forth in the Project Schedule,attached hereto as Exhibit"A",or a subsequently revised Project Schedule in such a manner that the GMP or Contract Time of the Project shall not be exceeded and that is consistent with the Standard of Care identified in Section 4.1. 9.1.1 Project Schedule. DB has submitted,as part of its proposal,a Project Schedule based on its estimate of the time necessary to complete the Project. 9.1.2 D/B's Obligation. Subsequent to the effective date of this Agreement,DB shall provide, coordinate, revise,and maintain the Project Schedule for all phases of the Project. 9.1.2.1 Duping t4e Project initiation aPA design p4ases,t4o Q43 s4all stibmit an updated Projee4 9.1.2.2 During Construction,DB shall submit an updated Project Schedule bi weekly to the City and shall include: 9.1.2.2.1 Forecast Data with the intended plan for the remainder of the contract duration. 9.1.2.2.2 Actual Data with indications of when and how much Work and/or Services was performed(%complete). 9.1.2.2.3 Logic changes or other changes required to maintain the Project Schedule. 9.1.3 Detail and Format. The Project Schedule shall be substantially similar in detail and form to Exhibit C, or it shall be in the form subsequently agreed to by the Parties. 9.1.4 Submittal. Project Schedule shall be submitted to City on a computer disk in software specifically agreed upon by the City. 9.2 Project Completion. DB acknowledges that all work on the Project under this Agreement will be complete and ready for its intended use by the Project Completion Date,July 30,2015. 9.3 Changes in Proiect Schedule. Changes in Project Schedule,whether to logic,definition,or relationship must be approved by the City in writing as a Change Order pursuant to the manner identified in Article XII. 13 2015-02-17 Agenda Packet Page 572 ARTICLE X. DELAY IN PERFORMANCE 10.1 Time of Essence. Time is of the essence for this Agreement and each provision of this Agreement,including the Project Schedule,Start Date,and Project Completion Date contained herein,unless otherwise specified in this Agreement. DB shall perform all Services and Work as expeditiously as is consistent with standard of care identified in Section 4.1. 10.2 Notification of Delay.If the DB anticipates or has reason to believe that the performance of Services and/or Work under this Agreement will be delayed,the DB shall immediately notify the City. A written notice of the delay must be delivered to the City within five(5)Calendar Days of the initial notification,unless the City allows an additional period of time to ascertain more accurate data in support of the request.The written notice shall include an explanation of the cause of the delay,a reasonable estimate of the length of the delay,and all supporting data.The DB shall include a written statement that the time adjustment requested is the entire time adjustment to which DB has reason to believe it is entitled as a result of the cause of the delay.An increase in time for completion does not necessarily mean that DB is entitled to an increase in GMP.If in the opinion of the City,the delay affects a material part of the Project,the City may exercise its rights under Article XXVI of this Agreement or any other remedy available in law or equity. 10.3 Delay. If delays in the performance of Services or Work required under this Agreement are caused by unforeseen events beyond the control of the Parties,such delay may entitle the DB to a reasonable extension of time or to additional compensation.Any such extension of time must be approved in writing by the City. The following conditions may justify such a delay:war;changes in law or government regulation;labor disputes;strikes;fires,floods,adverse weather or other similar condition of the elements necessitating cessation of the DB's work;inability to obtain materials,equipment,or labor;required additional Professional Services;or other specific reasons agreed to between the City and the DB;provided,however,that:(i)this provision shall not apply to,and the DB shall not be entitled to an extension of time,additional costs,or expenses for,a delay caused by the acts or omissions of the DB,its consultants,contractors,employees,or other agents;and(ii)a delay caused by the inability to obtain materials,equipment,or labor shall not entitle the DB to an extension of time unless the DB furnishes the City,in a timely manner,documentary proof satisfactory to City of the DB's inability to obtain materials,equipment,or labor. 10.3.1 Caused by City. If DB reasonably believes that any action,inaction,decision or direction by City or agent for the City will likely result in the GMP or Contract Time being exceeded or the Project being completed late,DB will notify City at Project Team meeting and in writing within five(5)calendar days of discovering such action,inaction,decision,or direction. Included in such notice will be an estimate of the cost and time impact resulting from such action,inaction,decision or direction. DB shall provide complete and accurate pricing within ten(10)calendar days of said discovery. 10.4 Costs of Delay/Linuidated Damages. City and DB recognize that time is of the essence in this Agreement and that City will suffer financial loss if the Project is not completed by the Substantial Completion Date identified in the Project Schedule or any extensions subsequently approved. As the exact amount of financial loss cannot be accurately forecasted,the Parties have used their best efforts to establish an estimate of such loss. In doing so,the Parties have examined all of the circumstances and factors associated with a delay and have determined an amount that is fair and reasonable as liquidated damages. City and DB agree that DB shall pay as liquidated damages(but not as a penalty)for each calendar day of delay beyond the time specified for Substantial Completion of the Project,the following amounts which DB expressly agrees are"not unreasonable under the circumstances"as defined in California Civil Code §1671(b): $100 for each calendar day. Liquidated Damages shall not be assessed after the date on which Substantial Completion is achieved. In lieu of paying damages to the City,the Parties agree that City may choose to reduce the GMP by the amount of the liquidated damages. ARTICLE XI. PROJECT COSTS 111 Estimated Cost. The Estimated Cost of Project,according to the RFP is one million,seven hundred fifty- eight thousand,two hundred forty-four dollars and twelve cents($1,758,244.12).The City's obligation under this Agreement shall not exceed the Estimated Cost;however,once a GMP is determined and approved,the GMP shall become the not to exceed amount of the City's obligation.GMP is subject to change pursuant to methods established in this Agreement. 14 2015-02-17 Agenda Packet Page 573 11.1.1 Cost Schedule. The estimated project cost has been allocated among each activity or portion of the Project("Itemized Cost(s)"). The Itemized Costs are included in Exhibit"A",attached. The cost incurred by the DB for a specific activity or portion of the Project shall not exceed the associated Itemized Cost. 11.2 GMP. At 90%complete construction documents,DB shall establish a GMP and submit such GMP to the City for approval. 11.2.1 Not to Exceed Amount. The GMP shall not exceed one million,seven hundred fifty-eight thousand, two hundred forty-four dollars and twelve cents($1,758,244.12). Any costs incurred by DB in excess of said GMP shall be the sole responsibility of the DB,unless a Change Order is approved by the City pursuant to Article XII of this Agreement. 11.2.1.1 Included Costs. In calculating the GMP,DB shall include costs of the following: 11.2.1.1.1 All Design Consultants,including but not limited to architectural,structural,civil, mechanical,electrical,communications,graphics and art consultants,landscape architects,and acoustical,audio visual,lighting,and security consultants. 11.2.1.1.2 Estimating,value engineering and construction management. 11.2.1.1.3 Construction supervision and project management personnel,including but not limited to superintendents,Project managers,Project secretaries,Project engineers, Project accountants,and all other DB personnel wherever located. 11.2.1.1.4 All on-site and off-site equipment,supplies and facilities,including but not limited to,computers,estimating,dictating,communication and accounting equipment, office space,trailers,field equipment and storage facilities. 11.2.1.1.4.1 Option to Purchase. In no case shall the cumulative monthly rental charges to the Project for equipment and Small Tools used by the DB exceed 90%of the fair market value of any one piece of equipment or Small Tools. At City's option,the full price for equipment or Small Tools may be paid,and City may take possession upon completion of the Work. 11.2.1.1.5 All Hard Construction Costs. 11.2.1.1.6 DB Contingency Fund,which shall not exceed 6%of Hard Construction Costs. 11.2.1.1.7 Reimbursable Costs. 11.2.1.1.8 DB Fixed Fee for the complete design and construction of the entire Project as specified in the 90%CD's. 11.2.1.1.9 No more than$240,334 for Design Services and General Conditions 10.2.1.1.10A11 home-office and field overhead costs of any type including document control and retention; 11.2.1.1.11A11 business license costs; 11.2.1.1.12A11 profit DB intends to earn under this Agreement. 11.2.1.1.13All direct and incidental costs incurred by DB,except for those specifically identified in the schedule of values. 11.2.1.2 Full Compensation. Unless otherwise expressly provided in this Agreement,GMP shall be the maximum amount of compensation to due to DB for all permitted costs of any type incurred by DB in performing all services and obligations under this Agreement. 11.2.2 Itemization. DB shall provide City with an itemization of the GMP that reconciles the GMP with the itemized costs. The itemization shall include the following: 15 2015-02-17 Agenda Packet Page 574 11.2.1.1 DB Fixed Fees. 11.2.1.2 Hard Construction Costs. Hard Construction Costs broken down into categories for each of the major trades for the Project,which will include labor,material expenses,equipment costs, and a reasonable DB Contingency Fund. 11.2.3 Alternate Bid Items. DB shall prepare,with the cooperation of the City,alternate bid items to assure that the cost of the Project will not exceed the GMP. 11.2.4 Adjustments to GMP Based on Approved Change Orders. GMP may be changed,increased or decreased,based on Change Orders approved pursuant to Article XII. 11.2.5 Adjustments Based on Other Cost Increases. GMP may be increased due to:(i)acts of God,acts of any governmental authority,the elements,war,litigation,shortages of material,labor strikes,inflation, later commonly accepted or adopted higher standards and specifications of construction,concealed or unknown conditions encountered in the completion of the Project,or other cause beyond DB's control,(ii)actual bids received being greater than estimated,or(iii)other factors not the result of unreasonable conduct by DB. The GMP may be increased by the amount of such increases;however, if GMP as proposed to be increased shall exceed the Estimated Costs,such change to GMP shall be subject to approval by City Council. 11.3 Duty to Advance Costs. DB shall advance all costs for Project subject to Reimbursement in the manner described in Article XV. 11.4 Use of Project Contingency. Project Contingency shall not be used without prior,written City approval and shall not be used for:(i)work required due to DB's,its officers',agents'or employees'failure to perform Work or Services according to the terms of this Agreement,in compliance with the Construction Documents, and/or Law;or(ii)uninsured losses resulting from the negligence of DB,its officers,agents,or employees. 11.5 Notification of Increased Costs. If,at any time,the DB anticipates that the amount expended on the Project will exceed the Estimated Cost or the GMP,when established,the DB shall immediately,not more than ten (10)Working Days from becoming aware of the potential increase,notify the City in writing.This written notification shall include an itemized cost estimate and a list of recommended revisions that the DB believes will bring the Project cost to within the Estimated Cost or GMP.Following the delivery of the Notice,DB shall assist the City in reviewing the itemized cost breakdown and adjusting the Scope of Work and establishing a revised Project,the cost of which will not exceed the Estimated Cost or GMP,once establish. 11.5.1 City Action. Following consultation with the DB,the City may choose to:(i)approve an increase in the amount authorized for the Project;(ii)delineate a project,which may be constructed for the budget amount;(iii)any combination of(i)and(ii);or terminate the Project subject to the termination provisions in Article XXVI. ARTICLE XIL PRODUCTS 12.1 Submittals. Prior to the bidding process,DB shall submit for City approval a list of products intended for use in the Project.Upon DB's completion of plans and specifications,City will review and approve products specified therein.DB shall provide City a copy of each submittal for City approval throughout the duration of construction within twenty(20)Calendar Days of DB's receipt of submittal.Approval is general approval only and in no way relieves DB of its sole responsibilities under this Agreement or any and all laws,codes,permits or regulations. 12.2 Substitutions. DB shall submit all requests for product substitutions to City in writing within thirty(30) Calendar Days after the date of award of the construction contract.After expiration of the thirty(30)Calendar Days,City will allow substitution only when a product becomes unavailable due to no fault of DB's contractor. City shall review substitution requests within thirty(30)Calendar Days of submission of such requests.DB agrees that City requires Consultant's input and as such DB shall coordinate a five(5)Working Day review by its Consultant. 16 2015-02-17 Agenda Packet Page 575 12.2.1 Substantiate Request. DB shall include with each substitution request complete data substantiating that the proposed substitution conforms to requirements of the Contract Documents. 12.2.2 D/B Representations. By submitting a substitution request,DB is representing to City all of the following:(i)DB has investigated proposed product and determined that in all respect the proposed product meets or exceeds the specified product;(ii)DB is providing the same warranty for the proposed product as was available for the specified product;(iii)DB shall coordinate installation and make any other necessary modifications which may be required for work to be complete in all respects; and(iv)DB shall waive any claims for additional costs related to the substituted product,unless the specified product is not commercially available. 12.2.3 Separate Written Request. City will not consider either substitutions that are implied in the product data submittal without a separate written request or substitutions that will require substantial revision of construction contract documents. 12.3 Samples. 12.3.1 Postage. Samples shall be sent to DB's office,carriage prepaid. 12.3.2 Review. DB shall furnish to City for review,prior to purchasing,fabricating,applying or installing, (2)two samples(other than field samples)of each required material with the required finish. 12.3.2.1 Where applicable,all samples shall be 8"x 10"in size and shall be limited in thickness to a minimum consistent with sample analysis.In lieu thereof,the actual full-size item shall be submitted. 12.3.2.2 DB shall assign a submittal number.DB shall include with each submission a list of all samples sent,a statement as to the usage of each sample and its location in the Project,the name of the manufacturer,trade name,style,model,and any other necessary identifying information. 12.3.2.3 All materials,finishes,and workmanship in the complete building shall be equal in every respect to that of the reviewed sample. 12.3.2.4 City will return one submitted sample upon completion of City review. 12.3.2.5 DB's,or DB's agent's,field samples shall be prepared at the site. Affected finish work shall not commence until DB or its agents have been given a written review of the field samples. 12.3.3 Not a Release ofLiability. City's review of samples in no way relieves DB of DB's responsibility for construction of Project in full compliance with all Contract Documents. 12.4 Observe Testing. When appropriate,DB shall witness testing and review materials and equipment testing results and provide comments regarding conformance with specification requirements. ARTICLE XIIL CHANGE ORDERS 13.1 When Required. Change Orders shall be required in the following instances: 13.1.1 GMP. Any adjustment in GMP. 13.1.2 Contract Time. Any adjustment in Contract Time of Completion Date. 13.1.3 Use of Contingency Fund. At any time DB seeks to use the Contingency Fund,irrespective of impact on the GMP or Contract Time. 13.1.4 City Requests. The City directs DB to perform Additional Services. 13.1.5 Other. Any other instance for which this Agreement expresses that a Change Order shall be used. 13.2 Process for Approval of Change Orders. Within five(5)Calendar Days of any event that gives rise to the need for a Change Order,the DB shall provide the City with written notice of the need for the same. The Change Order must indicate whether the change will affect,in any way,by increasing or decreasing,the GMP, Project Schedule,or project quality established during the design and submittal review process. In addition,it 17 2015-02-17 Agenda Packet Page 576 shall be accompanied by a detailed and complete estimate of cost impact associated with the Change Order, including all appropriate direct and indirect costs and credits. All such costs and credits shall be accurately categorized into DB Fixed Fee,Reimbursable Costs or Hard Construction Costs. DB shall also provide City with a realistic estimate of the impact,if any,the Change Order will have on the Contract Time. 13.2.1 Project Manager Approval. If the Change Order request does not result in an increase in the Estimated Cost,the City's project manager shall either approve or reject the Change Order in writing within ten (10)Working Days of receiving DB's written notice,provided DB has submitted complete documentation substantiating the need for such Change Order. If City fails to respond to DB's written notice within the ten(10)Working Days,the Change Order request shall be deemed denied. 13.2.2 City Council Approval. For Change Orders not subject to section 13.2.1,City Council approval is required. The City Council may either approve,reject,or approve in part such Change Orders. Council Approval shall not be subject to the ten(10)Working Day response time provided for in section 13.3.1. 13.3 Written Approval of Change Orders. DB shall not proceed on work requested under a Change Order, absent written approval from the appropriate authority. Any Services or Work,which require the approval of a Change Order,perform by DB prior to approval shall not be reimbursed. 13.4 Failure to Agree on Cost of Change Order or Time. In the event there is any disagreement or dispute between the Parties as to whether the DB is entitled to a Change Order,the amount of the Change Order or any increase in Contract Time requested through the Change Order,the dispute shall be resolved by the Director of Public Services. If the determination of the Director of Public Works is challenged,such challenge shall be address in the manner identified in Section 29.17. DB shall not have the right to stop or delay in the prosecution of any services or work,including services or work that is the subject of the Change Order(if directed by the City),pending the determination of the Director of Public Services or,if applicable,final resolution. Instead,DB shall continue diligently prosecuting all such services and work. 13.4 Full Compensation. Payment to DB for Change Orders shall provide full compensation for all equipment, materials,labor,field and home office overhead,mark-ups,and profit necessary to complete the work. By executing a Change Order,the DB or DB's representative acknowledges that no additional compensation or claims for items of work listed in the Change Order will be allowed. 13.5 Errors and Omissions. DB shall not be reimbursed for any costs or expenses of a Change Order resulting from a design error or omission,DB's negligence,or the negligence of any of DB's agents or subagents.DB shall be reimbursed for any costs or expenses of a Change Order resulting from a design error or omission that is the direct result of a City request for such design or omission. The City reserves the right to seek reimbursements for any funds used due to errors or omissions of the Design Consultants,DB's negligence,or the negligence of any of DB's agents,or subcontractors. 13.6 City Refusal to Approve Change Order. DB shall not have the right to terminate this Agreement for the City's refusal to approve a Change Order pursuant to Sections 12.2.1 or and 12.2.3 ARTICLE XIV. EXTRA WORK 14.1 City Authority to Order Extra Work. City may at any time prior to Project Completion order Extra Work on the Project. The sum of all Extra Work ordered shall not exceed five percent(5%)of the Estimated Cost at the time of the Bid Award,without invalidating this Agreement and without notice to any surety. 13.1.1 Requests in Writing. All requests for Extra Work shall be in writing,shall be treated as,and are subject to the same requirements as Change Orders. DB shall not be responsible for failure to perform Extra Work,which was requested in a manner inconsistent with this section. 14.2 Bonds Required for Extra Work. DB's and its agents'bonds,required under Article XXXIII,shall cover any Extra Work provided that the Extra Work is paid for by the Project Budget 14.3 Reimbursement for Extra Work. Work performed by DB as Extra Work is reimbursable in the same manner described in Article XV. The Project contingency as described in Article X,will be used first to cover the costs of Extra Work. 18 2015-02-17 Agenda Packet Page 577 14.4 Markup. DB will be paid a reasonable allowance for overhead and profit for Extra.Work. The allowance shall not exceed five percent(5%)of the approved costs for the Extra Work. ARTICLE XV.CHANGED CONDITIONS 15.1 Changed Conditions. Changed Conditions shall be addressed under the Greenbook section 3-4;however, Parties acknowledge that even if Changed Conditions are found to be present,the Project shall not exceed the GMP without express City Council approval of an increase to the Project Budget.Absent such express approval of additional funds,DB shall provide City with value engineering and Parties will return Project to within the total Project cost. ARTICLE XVL PAYMENT TERMS 16.1 Payment 16.1.1 Funds for Payment. DB shall only be entitled to payment for Services and Work performed under this Agreement from the funds appropriated for the Project. 16.1.2 Maximum Payment. DB shall be entitled to payment in an amount not to exceed the GMP or subsequently approved increase in GMP. DB is not entitled to payment for unapproved expenses, unapproved increases in costs,or other increases caused by DB negligence,omissions,or failure to seek approval for additional or increased costs. 16.1.3 Application for Payment. DB shall submit to City a certificate and application for payment on or before the 5th day of each calendar month("Payment Application"). The Payment Application shall be based upon the percentage of completion of the Schedule of Values plus any Reimburseable Costs,less any payments previously made by the City. incurred or advanced for the Project for which DB was has not previously received payment. The Payment Application must include all relevant documents in accordance with Section 15.1.6. If the City determines that all relevant documents have not been submitted,City shall request that DB provide additional documentation.DB shall provide additional documentation within ten(10)Working Days of request.City is not obligated to make payment to DB until City has received all relevant documentation to support Reimbursement Request. After all appropriate cost documentation has been received and City approves the Payment Application,City shall make payment to DB of all uncontested charges within thirty(30)Calendar Days of receipt of a complete Payment Application. 16.1.3.1 Withholding. From each payment,five percent(5%)will be deducted and retained by the City,and the remainder will be paid in accordance with the terms and conditions of this Agreement. No payment made to DB or its sureties will constitute a waiver of any rights the City has under this Agreement. This section is not intended to limit any rights the City may have under the Performance or Payment Bond. In lieu of withholding retention under this Agreement,at the election of DB,City will deposit retention amounts into escrow and/or the substitution of securities for money as provided in California Public Contract Code Section 22300. 16.1.3.2 Payment of Withholding. The City will pay the DB for the amounts withheld thirty-five(35) Calendar Days from recordation of the Notice of Completion,providing that no Stop Notices or Mechanic's Liens have been filed since the recordation of the Notice of Completion. 16.1.3.2.1 Where a Stop Notice or Mechanic's Lien has been filed following the recordation of the Notice of Completion,the amount in controversy shall continue to be withheld until a fully executed release of Stop Notice or Mechanic's Lien has been filed and a conformed copy delivered to the City. 16.1.3.3 Contested Charges. In the event City contests any charges contained in the Payment Application,the dispute shall be resolved in the manner identified in Section 21.6. DB shall not have the right to stop or delay in the prosecution or any Services of Work,pending the determination of the Director of Public Services or,if applicable,final resolution. Instead DB shall continue to diligently prosecute all Work and Services. During the time of the dispute,the City shall withhold the amount of the charge in question. 19 2015-02-17 Agenda Packet Page 578 16.1.3.4 Cutoff for Submission of Reimbursement Requests. DB shall submit all Reimbursement Requests within six(6)months of the date on which Final Completion occurs and City accepts the Project. Any Reimbursement Request submitted after the Cutoff Date shall not be reviewed or included in Reimbursable Cost. 16.1.4 Verification of Reimbursement Request. DB shall supply documentation to support the Reimbursement Request including,but not limited to,proof that all mechanic liens have been released, copies of invoices received and copies of cancelled checks,substitute checks,or image replacement documents showing that payment has been made in connection with the Reimbursement Request in the following manner: 16.146.1 DB shall submit two(2)copies of a Reimbursement Request(cover letter,invoice,and documentation)to the City. 16.1.4.2 After review and approval,the City shall prepare a memorandum to the Financing Department that the invoice is appropriate to pay.The memorandum shall indicate any costs to be disallowed and the reason for the disallowance. 16.1..4.2.1 Prior to the approval of the Reimbursement Request,City has the right to verify whether or not the materials and work for which reimbursement is being requested have been installed and performed as represented in the Reimbursement Request. 16.2.1 Non-reimbursable Costs. Except to the extent that City expressly assumes the risk of loss under this Agreement,City shall exclude from the amounts payable to DB the fair value,as determined by City,of property that is destroyed,lost,stolen,or damaged rendering it undeliverable or unusable for City. In addition,DB is not entitled to reimbursement for any cost or expenditure that has not been approved by the City in the manner required by this Agreement or the City Charter and rules,regulations,or laws promulgated there-under. ARTICLE XVIL INSPECTION 17.1 Inspection Team. The Project shall be inspected by a team composed of,at a minimum,the following:i.) representatives of the City,ii.)representative from DB's Design Team,iii.)the Construction Manager,and iv.Representative,(iii)DB's Consultant(s),and(e)the DB's construction superintendent[Inspection Team] 17.2 Inspection Staples. The Project shall be inspected by the Inspection Team at minimum during the following stages:(i)when required by code,(ii.)daily. 17.3 Access. City,its consultants,subcontractors,independent testing laboratories as well as other governmental agencies with jurisdictional interests will have access at reasonable times for this observation,inspecting and testing. DB shall provide them proper and safe conditions for such access and advise them of DB's safety procedures and programs so that they may comply. 17.4 Additional Inspections. City will make,or have made,such inspections and tests,as the City deems necessary to see that the Work is being accomplished in accordance with the requirements of the Construction. 17.5 Notice. DB shall give City timely notice of readiness of the Work for all required on and off-site inspections, tests,or approvals and shall cooperate with inspection and testing personnel to facilitate required inspections or tests. DB shall give at least 24 hours notice for on-site inspection and five(5)days notice for off-site inspection. 17.6 Costs of Inspection. Unless otherwise specified,the cost of inspection and testing will be borne by the City. Any expenses associated with re-inspection shall be borne by DB. 17.7 Concealing Work. Prior to concealing work,DB shall obtain approval of work from the City and as required by all State Building Codes. City has the right to stop or suspend Work activities which will conceal or cover up DB Work product which is to be inspected or tested,or which will interfere with the inspection or testing activities,for a reasonable time and DB will have no right to additional cost or time it may incur as a result of the Work stoppage. 17.8 Defective Work In the event such inspections or tests reveal non-compliance with the requirements of the Construction Documents or defective work,the provisions and process of Article XXI shall apply. 20 2015-02-17 Agenda Packet Page 579 17.9 Not a Waiver of Obligations. Neither observations by the City nor inspections,tests,or approvals by City or others shall relieve DB from DB's obligations to perform the Work in accordance with the Construction Documents.This approval is general approval only and in no way relieves DB of its sole responsibilities under this Agreement or any and all laws,codes,permits or regulations. XVIII. PROJECT COMPLETION 18.1 Notice to City. When DB determines that the Project is complete,DB shall notify the City in writing of the Projects status within seven(7)Calendar Days of the DB's determination. The notice shall certify to City that the Project has been completed in accordance with the Construction Documents,all applicable building codes and regulations,all permits,licenses,and certificates of inspection,use and occupancy,and ordinances relating to the Project. 18.2 Walk-Through Inspection. A preliminary Walk-Through Inspection shall be conducted by City within ten (10)Working Days following DB's notice to City of completion("Walk-Through Inspection").The Walk- Through Inspection will be conducted by the Inspection Team identified in Article XVI,Section 16.1. 18.2.1 Punch List. A Punch List,if necessary,shall be prepared by City during the Walk-Through Inspection. The Punch List shall be presented to DB by the RE within three(3)Working Days of the Walk- Through Inspection.DB shall correct the items listed on the Punch List within thirty(30)Calendar Days of receipt of the punch list and prior to the Final Inspection. 18.2.2 Failure to Identi Items. As to any items not included on the Punch List or later discovered,nothing in this section is intended to limit DB's obligations under this Agreement and City will maintain all remedies available under this Agreement and the law. 18.3 eansistet4,A,414 44e City's repoi4ing system. 18.4 Final Inspection. Provided DB has corrected the Punch List items and notified the City of the correction ("Notice of Correction'),the Final Inspection for the Project shall be scheduled and conducted within ninety (90)Calendar Days of the Notice of Correction. XVIX. PROJECT ACCEPTANCE AND FINAL COMPLETION 19.1 Acceptance. Upon approval by the Inspection Team during the Final Inspection that Project improvements are complete and that work required on the Punch List has been finished,City shall accept the Project ("Acceptance"). Upon Acceptance,DB shall do all of the following: 19.1.1 Notice of Completion. DB shall execute and file a Notice of Completion with the County Recorder of San Diego County and shall provide the RE with a conformed copy of the recorded Notice of Completion. 19.1.2 Lien and Material Releases. DB shall cause all contractors and subcontractors to provide lien and material releases as to the Project and provide copies of such lien and material releases to the City or, upon approval of City which shall not be unreasonably withheld,provide bonds in lieu of lien and material releases in a form reasonably acceptable to City for all such work. 19.2 Final Completion. Final Completion of the Project shall be deemed to occur on the last date of the following events:(i)recordation of the Notice of Completion with a conformed copy to City;(ii)submission of all 21 2015-02-17 Agenda Packet Page 580 documents required to be supplied by DB to City pursuant to this Agreement,including As-Built Drawings, warranties,and operating and maintenance manuals;or issuance of a final certificate of occupancy. 19.2.1 As-Builts. City will evaluate the submitted As-Builts for accuracy and completeness and may return comments.DB shall meet with City until all issues are resolved.Upon issue resolution,in accordance with disputed work procedures in Section 21.6,DB shall submit a mylar set and three (3)final blueline sets of As-Builts stamped by the architect/engineer of record as required by law. 19.2 No Waiver. DB's obligation to perform and complete the work in accordance with the Contract Documents shall be absolute.Neither recommendation of any progress payment or acceptance of work,nor any payment by City to DB under the Contract Documents,nor any use or occupancy of the Project or any part thereof by City,nor any act of acceptance by City,nor any failure to do act,nor any review of a shop drawing or sample submittal,will constitute an acceptance of work,which is not in accordance with the Contract Documents. ARTICLE XX. PROJECT DELIVERABLES 20.1 Proiect Deliverables. Prior to Acceptance,DB shall deliver all of the following to the City in the format required: 20.1.1 As-Builts. DB shall provide As-Builts. 20.1.1.1 As-Builts shall show by dimension accurate to within one(1)inch,the centerline of each nun of conduits and circuits,piping,ducts,and other similar items as determined by City,both concealed and visible.DB shall clearly identify the item by accurate note such as"cast iron drain,"galvanized water,etc.DB shall clearly show,by symbol or note,the vertical location of the item("under slab","in ceiling","exposed",etc.),and make all identification sufficiently descriptive that it may be related reliably to the specification. DB shall thoroughly coordinate all changes on the As-Builts making adequate and proper entries on each page of specifications and each sheet of drawings and other documents where entry is required to properly show the change. 20.1.1.2 DB shall include all of the following on the As-Builts: 20.1.1.2.1Depth of foundation in relation to finished first floor. 20.1.1.2.211orizontal and vertical locations of underground utilities and appurtenances, with references to permanent surface improvements. 20.1.1.2.3Locations of internal utilities and appurtenances,with references to visible and accessible features of the structure. 20.1.1.2.4Field changes of dimensions and details. 20.1.1.2.5Changes authorized by approved proposal requests,construction Change Orders, discussion with City that resulted in any change/deviation from City's program, specifications,approved plans,equipment or materials. 20.1.1.2.6Details not issued with original Construction Drawings,design/build plans deferred approvals,etc. 20.1.1.2.7Upon completion of work,obtain signature of licensed surveyor or civil engineer on the Project record set verifying layout information. 20.1.1.2.8Show locations of all utilities on-site with size,and type of pipe,if different than specified,and invert elevations of pipe at major grade and alignment changes. 20.1.1.2.9The title"PROJECT RECORD"in 3/8"letters. 20.1.1.3 DB shall maintain a set of As-Builts at the Project site for reference.DB shall ensure that changes to the As-Builts are made within twenty-four(24)hours after obtaining information. Changes shall be made with erasable colored pencil(not ink or indelible pencil),shall clearly describe the change by note(note in ink,colored pencil or rubber stamp)and by graphic line, 22 2015-02-17 Agenda Packet Page 581 shall indicate the date of entry,shall circle the area or areas affected and,in the event of overlapping changes,use different colors for each change. 20.1.2 Operation and Maintenance Manuals. DB shall submit all Operation and Maintenance manuals prepared in the following manner: 20.1.2.1 In triplicate,bound in 8'/z x 11 inch(216 x 279 mm)three-ring size binders with durable plastic covers prior to City's Final Inspection. 20.1.2.2 A separate volume for each system,including but not limited to,mechanical,electrical, plumbing,roofing,irrigation,and any other system as determined by City,with a table of contents and index tabs in each volume as follows: 20.1.2.2.1Part 1:Directory,listing names,addresses,and telephone numbers of D/B's agents, suppliers,manufacturers,and installers. 20.1.2.2.2Part 2:Operation and Maintenance Instructions,arranged by specification division or system.For each specification division or system,provide names,addresses and telephone numbers of D/B's agents,suppliers,manufacturers,and installers. In addition,list the following: (i)appropriate design criteria;(ii)list of equipment;(iii)parts list;(iv)operating instructions;(v)maintenance instructions, equipment;(vi)maintenance instructions,finishes;(vii)shop drawings and product data;and(viii)warranties. 20.2 Ownership of Proiect Deliverables. Upon Final Completion or Termination,Project Deliverables shall become the property of the City. DB and City mutually agree that the Contract documents for the Project shall not be used on any other work without the consent of each Party. Assemble and deliver to City upon Final Completion all records,documents,warranties,bonds,guarantees,maintenance/service contracts,and maintenance and operating manuals ARTICLE XXL WARRANTIES 21.1 Warranties Required. DB shall provide and require its agents to provide the warranties listed below.This warranty requirement is not intended to exclude,and shall not exclude,other implicit or explicit warranties or guarantees required or implied by law. 21.1.1 Materials and Workmanship. DB shall guarantee,and shall require its agents to guarantee,all work on the Project against defective workmanship and materials furnished by DB for a period of two(2) years from the date of Project's Final Completion.DB shall replace or repair any such defective work in a manner satisfactory to City,after notice to do so from City,and within the time specified in the notice. 21.1.2 New Materials and Equipment. DB shall warrant and guarantee,and shall require its agents to warrant and guarantee,to City that all materials and equipment incorporated into the Project are new unless otherwise specified. 21.1.3 Design, Construction, and Other Defects. DB shall warrant and guarantee,and shall require its agents to warrant and guarantee to City that all work is in accordance with the Plans and Specifications and is not defective in any way in design,construction or otherwise. 21.2 Form and Content. Except manufacturer's standard printed warranties,all warranties shall be on DB's and D/B's agent's,material supplier's,installer's or manufacturer's own letterhead,addressed to City. All warranties shall be submitted in the format specified in this section,modified as approved by City to suit the conditions pertaining to the warranty. 21.2.1 Durable Binder. Obtain warranties,executed in triplicate by D/B,D/B's agents,installers,and manufacturers.Provide Table of Contents and assemble in binder with durable plastic cover. 21.2.2 Table of Contents. All warranties shall be listed and typewritten in the sequence of the Table of Contents of the Project manual,with each item identified with the number and title of the specification section in which specified,and the name of product or work item. 21.2.3 Index Tabs. Separate each warranty with index tab sheets keyed to the Table of Contents listing. 23 2015-02-17 Agenda Packet Page 582 21.2.4 Detail. Provide full information,using separate typewritten sheets,as necessary.List DB's agents, installer,and manufacturer,with name,address and telephone number of responsible principal. 21.2.5 Warranty Start Date. Except for items put into use with DB's permission with date mutually agreed upon in writing,leave date of beginning of time of warranty open until the date of Final Completion. 21.2.6 Signature and Notarization. All warranties shall be signed and notarized. Signatures shall be required from DB's construction contractor and where appropriate,the responsible subcontractor. 21.3 Term of Warranties. Unless otherwise specified or provided by law,warranties shall extend for a term of two(2)year(s)from the date of Final Completion. 20.3.1 Plants, Trees, and Shrubs. Not withstanding above,all shrubs and ground cover shall have a ninety (90)Calendar Day warranty period and trees shall have a one(1)year warranty period. All plant warranties shall commence from the date of Final Completion. 21.4 Meetings. During the two(2)year warranty period described in Section 20.3,DB shall meet,and shall require its design Consultant,construction contractor,and key subcontractors to meet,with the City representatives,on a monthly basis,if requested by City.This meeting shall be held to discuss and resolve any problems that City discovers in design,construction,or furnishing,fixtures,and equipment of the Project during the two(2)year warranty period. 21.5 Warranty Inspection. At 180 and 360 days following Final Completion,during the one-year general building warranty period,DB shall inspect each component of the Project,identify items requiring repair,and oversee and complete such repairs. Findings of such inspections shall be reported to the City. ARTICLE XXIL DEFECTIVE WORK 22.1 Correction,Removal,or Replacement. If within the designated warranty period,or such additional period as may be required by law or regulation,the Project is discovered to contain Defective Work,the DB shall promptly and in accordance with the City's written instructions and within the reasonable time limits stated therein,either correct the Defective Work,or if it has been rejected by City,remove it from the site and replace it with non-defective and conforming work. 22.2 City's Right to Correct. If circumstances warrant,including but not limited to an emergency or DB's failure to adhere to section 21.1,City may correct,remove,or replace the Defective Work. In such circumstances, DB shall not recover costs associated with the Defective Work and shall reimburse the City for all City's costs,whether direct or indirect,associated with the correction or removal and replacement. 22.3 Non-Reimbursable Costs. All costs incurred by DB or DB's agents to remedy defects are non-reimbursable costs. If the City has already reimbursed the DB for the defective work,City is entitled to an appropriate decrease in Reimbursable Costs,to withhold a setoff against the amount,or to make a claim against DB's bond if DB has been paid in full. 22.4 Extension of Warranty. When Defective Work,or damage therefrom,has been corrected,removed,or replaced during the warranty period,the two(2)year,or relevant warranty period,will be extended for an additional two(2)years from the date of the satisfactory completion of the correction,removal,or replacement. 22.5 No Limitation on other Remedies. Exercise of the remedies for defects pursuant to this Article shall not limit the remedies City may pursue under this Agreement or law. 22.6 Disputes. If DB and City are unable to reach agreement on disputed work,City may direct DB to proceed with the work and compensate DB for undisputed amounts.Payment of disputed amounts shall be as later determined by the Director of Public Services. If this decision is constested,the claims procedure in 29.17 shall be followed.DB shall maintain and keep all records relating to disputed work for a period of three(3) years in accordance with Article XXVII. ARTICLE XIIL MAINTENANCE OF LANDSCAPING&IRRIGATION WORK 23.1 Maintenance Period. If DB is required to install or maintain landscaping and/or irrigation,DB shall provide a maintenance period which shall begin on the first day after all landscape and irrigation work on the Project is 24 2015-02-17 Agenda Packet Page 583 complete,checked,approved by City,and City has given written approval to begin the maintenance period, and shall continue thereafter for ninety(90)Calendar Days or until Project Acceptance,whichever is longer. 23.2 Maintenance Area. DB or DB's Contractor shall maintain all involved areas of the Project. 23.3 Maintenance Required. DB or DB's Contractor shall conduct regular planting maintenance operations immediately after each plant is planted.Plants shall be kept in a healthy,growing condition and in a visually pleasing appearance by watering,pruning,mowing,rolling,trimming,edging,fertilizing,restaking,pest and disease controlling,spraying,weeding,cleaning up and any other necessary operation of maintenance. Landscape areas shall be kept free of weeds,noxious grass and all other undesired vegetative growth and debris.DB or DB's Contractor shall replace all plants found to be dead or in an impaired condition within fourteen(14)days.Maintenance shall also include the following:(i)Filling and replanting of any low areas which may cause standing water;(ii)Adjusting of sprinkler head height and watering pattern;(iii)Filling and recompaction of eroded areas;(iv)Weekly removal of trash,litter,clippings and foreign debris;(v)Inspecting plants at least twice per week;(vi)Protecting all planting areas against traffic or other potential causes of damage. 23.4 Landscape and Irrigation Inspection. At the conclusion of the maintenance period,City shall inspect the landscaping and irrigation to determine the acceptability of the work,including maintenance.This inspection shall be scheduled with two(2)weeks notice,a minimum of ninety(90)Calendar Days after the plant maintenance period commencement,or when the DB or DB's contractor notifies the City that they are ready for the final inspection,whichever comes last.The City will notify DB of all deficiencies revealed by the inspection before acceptance. 23.5 Extension of Maintenance Period. DB shall extend completion of the maintenance period when,in City's opinion,improper maintenance and/or possible poor or unhealthy condition of planted material is evident at the termination of the scheduled maintenance period.DB shall be responsible for additional maintenance of the work until all of the work is completed and acceptable. Additional costs for failure to maintain landscaping during the Maintenance Period are not Reimbursable Costs. 23.6 Replacement. Plants found to be dead or not in a vigorous condition,or if root balls have been damaged, within the installation,maintenance and guarantee periods,shall be replaced within fourteen(14)Working Days of notification by City.DB shall include,at DB's or DB's Contractor's expense,a timely written diagnosis of plant health by a certified Arborist,should a dispute arise.Arborist's report shall indicate reason for lack of vigor,potential remedies,if any,and estimate of time required to regain vigor and specified size. 22.6.1 Same Kind and Size. Plants used for replacement shall be same kind and size as specified and shall be furnished,planted and fertilized as originally specified.Cost of all repair work to existing improvements damaged during replacements shall be borne by DB and shall not be Reimbursable Costs. ARTICLE XXIV.BONDS 24.1 Payment Bond. DB shall provide or require its Construction Contractor to provide City with a Payment (material and labor)Bond in favor of City for one hundred percent(100%)of the Hard Construction Costs. 24.2 Performance Bond. DB shall provide or require its Construction Contractor to provide City with a Faithful Performance Bond in favor of the City for one hundred percent (100%)of the GMP. 24.3 Term. The Payment Bond shall remain in full force and effect at least until the Project is accepted by the City and all claims for materials and labor are paid,for a minimum of forty-five(45)Calendar Days after the filing of the Notice of Completion,except as otherwise provided by law or regulation. The Performance Bond shall remain in full force for thirty(30)Calendar Days following the filing date of the Notice of Completion and Acceptance,at which time it will convert to a ten percent(10%)warranty bond,which shall remain in place until the end of all warranty periods set forth in this Agreement. 24.4 Certificate of Agency. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act. 24.5 Licensing and Rating. The bonds shall be duly executed by responsible surety companies admitted to do business in the State of California,licensed or authorized in the jurisdiction in which the project is located to 25 2015-02-17 Agenda Packet Page 584 issue bonds for the limits required by this agreement,listed as approved by the United States Department of Treasury Circular 570,and whose underwriting limitation is sufficient to issue bonds in the amount required by this agreement and which also satisfy the requirements stated in Section 995.660 of the Code of Civil Procedure,except as provided otherwise by laws or regulations,secured through an authorized agent with an office in California,and have a minimum AM Best rating of"A-". 24.6 Form. All bonds shall be in the form prescribed by City Attorney. 24.7 Insolvency or Bankruptcy. If the surety on any bond furnished by the Construction Contractor is declared bankrupt or becomes insolvent or its right to do business is terminated in any state where any part of the Project is located,DB shall within seven(7)Calendar Days thereafter substitute or require the substitution of another bond and surety,acceptable to the City. ARTICLE XXV.INDEMNITY&DUTY TO DEFEND 25.1 Indemnity Defense and Hold Harmless-General Requirement. Except for liability for Professional Services covered under Section 24.2,DB shall defend,indemnify,protect and hold harmless the City,its elected and appointed officers and employees,from and against any and all claims,demands,causes of action, costs,expenses,liability,loss,damage or injury,in law or equity,to property or persons,including wrongful death,in any manner arising out of or incident to any alleged acts,omissions,negligence,or willful misconduct of DB,its officials,officers,employees,agents,and contractors,arising out of or in connection with the performance of the Defined Services or this Agreement. This indemnity provision does not include any claims,damages,liability,costs and expenses(including without limitations,attorneys fees)arising from the sole negligence or sole willful misconduct of the City,its officers,employees.Also covered is liability arising from,connected with,caused by or claimed to be caused by the active or passive negligent acts or omissions of the City,its agents,officers,or employees which may be in combination with the active or passive negligent acts or omissions of the DB,its employees,agents or officers,or any third party. 25.2 Professional Services. For those professionals who are required to be licensed by the state(e.g.architects, landscape architects,surveyors and engineers)("Design Professionals"),Design Professionals shall defend, indemnify and hold the City,its officials,officers,employees,volunteers,and agents free and harmless from any and all claims,demands,causes of action,costs,expenses,liability,loss,damage or injury,in law or equity,to property or persons,including wrongful death,in any manner arising out of,pertaining to,or relating to any negligence,errors or omissions,recklessness,or willful misconduct of Design Professional,its officials, officers,employees,agents,DBs,and contractors arising out of or in connection with the performance of the Design Professional's Services. Also covered is liability arising from,connected with,caused by,or claimed to be caused by the active or passive negligent acts or omissions of the City,its agents,officers,or employees which may be in combination with the active or passive negligent acts or omissions of the Design Professional, its employees,agents or officers,or any third party.The Design Professional's duty to indemnify,protect and hold harmless shall not include any claims or liabilities arising from the sole negligence or sole willful misconduct of the City,its agents,officers or employees.This section in no way alters,affects or modifies the Design Professional's obligation and duties under this Agreement. 25.3 Indemnification for Liens and Stop Notices. The DB shall keep the Project and Property free of any mechanic's liens and immediately secure the release of any stop notices. The DB shall defend,indemnify, protect,and hold harmless,the City,its agents,officers and employees from and against any and all liability, claims,costs,and damages,including but not limited to,attorney fees,arising from or attributable to a failure to pay claimants. DB shall be responsible for payment of all persons entitled to assert liens and stop notices. 25.4 Indemnification for Hazardous Materials. DB agrees to defend,indemnify,and hold harmless,the City,its agents,officers and employees from and against any and all costs,damages,claims,and liabilities,including reasonable attorney fees,foreseeable or unforeseeable,directly or indirectly,arising from or related to the Hazardous Materials identified in the Phase I or Phase II Reports,if any,conducted pursuant to Article V. DB's indemnity shall survive the close of escrow. Seller expressly preserves its rights against other parties and does not release,or waive its rights to contribution against,any other party. 25.5 Costs of Defense and Award. Included in the obligations in Sections 24.1 through 24.4,above,is the DB's obligation to defend,at DB's own cost,expense and risk,any and all aforesaid suits,actions or other legal proceedings of every kind that may be brought or instituted against the City,its directors,officials,officers, 26 2015-02-17 Agenda Packet Page 585 employees,agents and/or volunteers. DB shall pay and satisfy any judgment,award or decree that may be rendered against City or its directors,officials,officers,employees,agents and/or volunteers,for any and all legal expense and cost incurred by each of them in connection therewith. 25.6 Insurance Proceeds. DB's obligation to indemnify shall not be restricted to insurance proceeds,if any, received by the City,its directors,officials,officers,employees,agents,and/or volunteers. 25.7 Enforcement Costs. DB agrees to pay any and all costs City incurs enforcing the indemnity and defense provisions set forth in this Article XXIV. 25.8 Survival. Consultant's obligations under this Article XXIV shall survive the termination of this Agreement. ARTICLE XXVL INSURANCE 26.1 General. DB shall not begin work under this Agreement until it has:(i)obtained,and upon the City's request provided to the City,insurance certificates reflecting evidence of all insurance required in section 25.2;(ii) obtained City approval of each company or companies;and(iii)confirmed that all policies contain the specific provisions required by section 25.4. 26.2 Types of Insurance. At all times during the term of this Agreement,DB shall maintain insurance coverage as follows: 26.2.1 Commercial General Liability. Contractor shall provide at its expense a policy or policies of Commercial General Liability [CGL] Insurance written on an ISO Occurrence form CG 00 0107 98 or an equivalent form providing coverage at least as broad and which shall cover liability arising from premises and operations,XCU(explosions,underground,and collapse)independent contractors, products/completed operations,personal injury and advertising injury,bodily injury,property damage, and liability assumed under an insured's contract(including the tort liability of another assumed in a business contract).There shall be no endorsement or modification of the CGL Insurance limiting the scope of coverage for either"insured vs.insured"claims or contractual liability.Contractor shall maintain the same or equivalent CGL Insurance as described herein for at least ten(10)years following substantial completion of the work.All costs of defense shall be outside the policy limits. The Policy shall provide for coverage in amounts not less than two million dollars($2,000,000)per occurrence for Bodily Injury,Personal Injury,or Property Damage. If Commercial General Liability Insurance or other form with a general aggregate limit shall apply separately to this project/location, the general aggregate limit shall be twice the required occurrence limit. 26.2.2 Commercial Automobile Liability. For all of DB's automobiles used in conjunction with the Project including owned,hired and non-owned automobiles,DB shall keep in full force and effect,a policy or policies of Commercial Automobile Liability Insurance written on an ISO form CA 00 01 12 90 or a later version of this form or equivalent form providing coverage at least as broad in the amount of one million dollars($1,000,000)combined single limit per occurrence,covering bodily injury and property damage for owned,non-owned and hired automobiles["Any Auto"]. All costs of defense shall be outside the policy. 26.2.3Architects and Engineers Professional Liability. For all of DB's employees who are subject to this Agreement,DB shall keep in full force and effect,or DB shall require that its architect/engineer(s)of record keep in full force and effect errors and omissions insurance providing coverage for professional liability with a combined single limit of one million dollars($2,000,000)per claim and two million dollars($2,000,000) annual aggregate.DB shall ensure both that(i)this policy retroactive date is on or before the date of commencement of the Project;and(ii)this policy has a reporting period of three(3)years after the date of completion or termination of this Agreement.DB agrees that for the time period defined above,there will be no changes or endorsements to the policy that increases the City's exposure to loss. 26.2.4 Excess Liability. DB shall provide Excess Liability Insurance affording three million dollars ($3,000,000)[Generally Check with Risk)in excess of General Liability and Employer's Liability limits afforded on primary policies. The coverage will be subject to the same terms,conditions,and exclusions found in the primary policies. 27 2015-02-17 Agenda Packet Page 586 26.2.5 Contractors Pollution Liability. If the DB or its Contractors'Work includes cleanup,removal, storage,or otherwise handling of hazardous or toxic chemicals,materials,substances,or any other pollutants,Contractor shall provide at their expense Contractors Pollution Liability Insurance appropriate to cover such activities in an amount not less than$3,000,000 Combined Single Limit per occurrence/aggregate for bodily injury,property damage and remediation. 26.2.5.1 Claims made policies will include a five(5)year Extended Claims Discovery Period applicable to this Agreement,if reasonably available. 26.2.5.2 The policy for this insurance shall include Contractual Liability coverage.Such policy shall be endorsed to specifically provide for Work performed under the Agreement. 26.2.5.3 The DB or its Contractors of any tier shall furnish to the City a policy or Certificate of Contractors Pollution Liability Insurance in which the City,its elected and appointed officers,employees,and agents,and the DB are named as additional insureds. The policy or Certificate must plainly designate the name of the Project,name of the Disposal-Site,and the permits secured for its disposal.This Certificate must be furnished to the City, evidencing compliance with the outlined requirements,prior to the DB or Contractor beginning their Work on the Project.Any failure to furnish this policy or Certificate of Insurance shall not relieve the DB or Contractor from their obligations under this Section. 26.2.6 Hazardous Transporters Pollution Liability. If the DB's or its contractors'Work includes transportation of hazardous or toxic chemicals,materials,substances or any other pollutants the DB or its Contractor of any tier shall provide,at their expense,Transporters Pollution Liability Insurance in an amount not less than$3,000,000 Combined Single Limit per occurrence/Aggregate for bodily injury,property damage and remediation. 26.2.6.1 Claims Made policies will include a five(5)year Extended Claims Discovery Period applicable to this Agreement,if reasonably available. 26.2.6.2 Such policy shall be endorsed to specifically provide coverage for Work performed under this Agreement. The DB or its contractors of any tier shall furnish the City with a policy or Certificate of Hazardous Transporters Pollution Liability Insurance in which the City,its elected and appointed officers and employees,and agents,the DB,and any upper tiered contractor are named additional insureds. 26.2.6.3 The policy or Certificate must plainly designate the name of the Project,name of the Disposal Site,and the permits secured for its disposal.This Certificate must be furnished to the City,evidencing compliance with the outlined requirements,prior to the DB or Contractor beginning their Work on the Project.Any failure to furnish this policy or Certificate of Insurance shall not relieve the DB or Contractor from their obligations under this Section. 26.2.7 Worker's Compensation. For all of DB's employees who are subject to this Agreement and to the extent required by the State of California,DB shall keep in full force and effect,a Workers' Compensation Insurance and Employers' Liability Insurance to protect DB against all claims under applicable state workers'compensation laws. The City,its elected officials,and employees will not be responsible for any claims in law or equity occasioned by the failure of the DB to comply with the requirements of this section. That policy shall provide at least the statutory minimums of one million ($1,000,000)for Bodily Injury by Accident for each accident,one million dollars($1,000,000)for Bodily Injury by Disease each employee,and a one million dollars($1,000,000)for Bodily Injury by Disease policy limit. 26.2.7.1 Prior to the execution of the Agreement by the City,the DB shall file the following signed certification: "I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for worker's compensation or to undertake self- insurance,in accordance with the provisions of that code,and I will comply with such provisions before commencing the performance of the work of the Contract." 28 2015-02-17 Agenda Packet Page 587 26.2.8 Builder's Risk. To the extent commercially available,City shall provide a policy of"all risk"Builders Risk Insurance.City shall add its respective elected officials,officers,employees,agents,and representatives to the policy as loss payees,to the extent such insurance is commercially available. Coverage will be provided for the Replacement Cost of Materials,Equipment and Fixtures destined to become a permanent part of the structure,and coverage will include Property in Transit and Property in Offsite Storage.City shall also add its construction contractor,and the construction contractor's subcontractors to the policy as additional named insureds or loss payees,to the extent their interest may appear. The limit for this policy shall be a minimum of$ 1,758,244.12(GMP dollar amount to reflect project soft and hard costs). It shall be DB's responsibility to bear the expense of any deductible.The Builders Risk coverage shall expire at the time such insured property is occupied by City,or a Notice of Completion is filed,whichever occurs first. Contractor and its Subcontractors will be solely responsible for any loss or damage to their personal property,including contractor's tools and equipment owned,used,leased or rented by the Contractor or Subcontractor. 26.3 Rating Requirements. Except for State Compensation Insurance Fund,all insurance required by express provision of this Agreement shall be carried only by responsible insurance companies that have been given at least an"A"or"A-"and"V"rating by AM BEST,that are authorized by the California Insurance Commissioner to do business in the State of California,and that have been approved by the City. 25.3.1 Non Admitted Carriers. The City will accept insurance provided by non-admitted,"surplus lines" carriers only if the carrier is authorized to do business in the State of California and is included on the List of Eligible Surplus Lines Insurers [LESLI list]with a current AM BEST rating of no less than A:X. 26.4 Endorsements Required. Each policy required under Article XXV,section 25.2 of this Agreement shall expressly provide,and an endorsement shall be submitted to the City,that: 26.4.1 Additional Insureds. Except as to Architects and/or Engineers professional liability insurance and Workers Compensation,the City of Chula Vista and its respective elected officials,officers, employees,agents,and representatives shall be named as additional insureds. 26.4.1.1 Commercial General Liability. The policy or policies must be endorsed to include as an Additional Insured the City of Chula Vista and its respective elected officials,officers, employees,agents,and representatives. Liability Additional Insured Endorsement must be provided on ISO form CG 2010(11/85)or equivalent,specifically,coverage afforded City must be Primary and must not exclude Completed Operations. The coverage for Projects for which the Engineer's Estimate is one million dollars($1,000,000)or more shall include liability arising out of:(i)Ongoing operations performed DB or on DB's behalf,(ii)DB's products,(iii)DB's work,including but not limited to completed operations performed by DB or on DB's behalf,or(iv)premises owned,leased,controlled,or used by DB;the coverage for Projects for which the Engineer's Estimate is less than one million dollars ($1,000,000)shall include liability arising out of.(i)Ongoing operations performed by DB or on DB's behalf,(ii)DB's products,work,including but not limited to completed operations performed by DB or on DB's behalf,or(iii)premises owned,leased,controlled, or used by you; Except that in connection with,collateral to,or affecting any construction contract to which the provisions of subdivision(b)of Section 2782 of the California Civil Code apply, these endorsements shall not provide any duty of indemnity coverage for the active negligence of the City of Chula Vista and its respective elected officials,officers, employees,agents,and representatives in any case where an agreement to indemnify the City of Chula Vista and its respective elected officials,officers,employees,agents,and representatives would be invalid under subdivision(b)of Section 2782 of the California Civil Code.In any case where a claim or loss encompasses the negligence of the Insured and the active negligence of the City of City of Chula Vista and its respective elected officials, officers,employees,agents,and representatives that is not covered because of California Insurance Code Section 11580.04,the insurer's obligation to the City of San Chula Vista and its respective elected officials,officers,employees,agents,and representatives shall be limited to obligations permitted by California Insurance Code Section 11580.04. 29 2015-02-17 Agenda Packet Page 588 26.4.1.2 Commercial Automobile Liability Insurance. Unless the policy or policies of Commercial Auto Liability Insurance are written on an ISO form CA 00 01 12 90 or a later version of this form or equivalent form providing coverage at least as broad,the policy or policies must be endorsed to include as an Additional Insured the City of Chula Vista and its respective elected officials,officers,employees,agents,and representatives,with respect to liability arising out of automobiles owned,leased,hired or borrowed by or on behalf of the Contractor;Except that in connection with,collateral to,or affecting any construction contract to which the provisions of subdivision(b)of Section 2782 of the California Civil Code apply,this endorsement shall not provide any duty of indemnity coverage for the active negligence of the City of Chula Vista and its respective elected officials,officers,employees,agents,and representatives in any case where an agreement to indemnify the City of Chula Vista and its respective elected officials,officers,employees,agents,and representatives would be invalid under subdivision(b)of Section 2782 of the California Civil Code.In any case where a claim or loss encompasses the negligence of the Insured and the active negligence of the City of Chula Vista and its respective elected officials,officers,employees,agents,and representatives that is not covered because of California Insurance Code Section 115 80.04, the insurer's obligation to the City of Chula Vista and its respective elected officials,officers, employees,agents,and representatives shall be limited to obligations permitted by California Insurance Code Section 11580.04. 26.4.2 Primary and Non-Contributory. The policies are primary and non-contributing to any insurance or self-insurance that may be carried by the City of Chula Vista,its elected officials,officers,employees, agents,and representatives with respect to operations,including the completed operations if appropriate,of the Named Insured. Any insurance maintained by the City of Chula Vista and its elected officials,officers,employees,agents,and representatives shall be in excess of DB's insurance and shall not contribute to it. 26.4.3 Waiver of Subrogation. Consultant's insurer will provide a Waiver of Subrogation in favor of the City for each required policy providing coverage for the term required by this Agreement. 26.4.4 Project General Aggregate Limit. The CGL policy or policies must be endorsed to provide a Designated Construction Project General Aggregate Limit that will apply only to the Work performed under this Agreement.Claims payments not arising from the Work shall not reduce the Designated Construction Project General Aggregate Limit.The Designated Construction Project General Aggregate Limit shall be in addition to the aggregate limit provided for the products-completed operations hazard. 26.4.5 Written Notice. Except as provided for under California law,the policies cannot be canceled,non- renewed or materially changed except after thirty(30)Calendar Days prior written notice by DB to the City by certified mail,as reflected in an endorsement which shall be submitted to the City,except for non-payment of premium,in which case ten(10)Calendar Days notice shall be provided. 26.4.5.1 The words"will endeavor"and"but failure to mail such notice shall impose no obligation or liability of any kind upon the company,its agents,or representatives"shall be deleted from all certificates. 26.4.6 Additional Insurance. DB may obtain additional insurance not required by this Agreement. 26.4.7 Prior to Starting Work. Before performing any work,DB shall provide the City with all Certificates of Insurance accompanied by all endorsements. 26.5 Subcontractors. All coverages for subcontractors or subconsultants shall be subject to all of the requirements stated herein. Subcontractors and Subconsultants shall be protected against risk of loss by maintaining insurance in the categories and at the limits required herein. Subcontractors and Subconsultants shall name City and DB as additional insureds under its policies. 26.6 Obligation to Provide Documents. The DB shall provide copies of documents including but not limited to certificates of insurance and endorsements,and shall furnish renewal documentation prior to expiration of insurance.Each required document shall be signed by the insurer or a person authorized by the insurer to bind 30 2015-02-17 Agenda Packet Page 589 coverage on its behalf.The City reserves the right to require complete,certified copies of all insurance policies required herein. 26.6.1 Cooperation. The DB and its Contractors shall cooperate fully with and provide any information or records requested by the City or regarding all aspects of the insurance and project,including but not limited to claims,audit,payroll,insurance records and safety.Delays in reporting information to the City may result in delays in progress payments to the DB. 26.7 Deductibles/Self Insured Retentions. All deductibles and self-insurance retentions on any policy shall be the responsibility of DB. Deductibles and self-insurance retentions shall be disclosed to and approved by the City at the time the evidence of insurance is provided. At the option of the City,either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City,its officers,officials,employees and volunteers;or the DB shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations,claim administration and defense expenses. 26.8 Policy Changes. DB shall not modify any policy or endorsement thereto which increases the City's exposure to loss for the duration of this Agreement. 26.9 Reservation of Rights. The City reserves the right,from time to time,to review the Contractor's insurance coverage,limits,deductible and self-insured retentions to determine if they are acceptable to the City.The City will reimburse the Contractor for the cost of the additional premium for any coverage requested by the City in excess of that required by this Agreement without overhead,profit,or any other markup. 26.10 Not a Limitation of Other Obligations. Insurance provisions under this section shall not be construed to limit the DB's obligations under this Agreement,including Indemnity. 26.11 Material Breach. Failure to maintain,renew,or provide evidence of renewal during the term of this Agreement may be treated by the City as a material breach of contract. ARTICLE XXVIL TERMINATION/SUSPENSION OF WORK 27.1 Suspension of Work for Archaeological and/or Paleontological Discoveries. If a discovery is made of an archaeological or paleontological interest,DB shall immediately cease operations in the area of the discovery and shall not continue until ordered by City. When resumed,operations within the area of the discovery shall be as directed by City. 27.1.1 Discoveries which maybe encountered may include,but are not be limited to,dwelling sites,stone implements or other artifacts,animal bones,human bones,fossils or any item with cultural significance. 27.1.2 DB shall be entitled to an extension of time and compensation in accordance with the provisions of this Agreement. 27.2 Termination of Agreement by City for Cause. If,through any cause,DB shall fail to fulfill in a timely and proper manner DB's obligations under this Agreement,or if DB shall violate any of the covenants, conditions,agreements or stipulations of this Agreement,City shall have the right to terminate this Agreement by giving written notice to DB of such termination and specifying the effective date thereof at least five(5) Calendar Days before the effective date of such termination. 27.3 Termination or Suspension for Convenience by City. City may terminate or suspend this Agreement at any time and for any reason,by giving specific written notice to DB of such termination or suspension and specifying the effective date thereof,at least seven(7)Calendar Days before the effective date of such suspension or termination. In the event of an emergency,advance notice shall not be required under this provision. 27.4 Termination of Agreement by DB. DB may terminate the Agreement upon ten(10)days written notice to City,whenever either of the following occur: 27.4.1 Project Suspension. If the Project has been suspended under the provisions of Section 26.1 or 26.3,for more than ninety(90)consecutive days through no fault or negligence of DB,and notice to resume Work or to terminate the Agreement has not been received from City within this time period;or, 31 2015-02-17 Agenda Packet Page 590 27.4.2 Failure to Pay Amounts Due and Not in Dispute. If City fails to pay D/B any monies due and not in dispute in accordance with the terms of this Agreement within ninety(90)Calendar Days,plus the ten (10)Calendar Days afforded the City to remedy the failure,after presentation to City by D/B of a request therefore. 27.5 D/B Action Required. Upon receipt of the Notice of Termination,D/B shall take any and all action that may be necessary,or that the City Manager may direct,for the protection and preservation of the property related to this Agreement that is in the possession of D/B and in which City has or may acquire an interest. 27.6 Possession,Ownership,and Control of Documents. In the event that this Agreement is terminated in accordance with Sections 26.2 through 26.4,all finished or unfinished documents,data,studies,drawings, maps,plans,specifications,reports and other materials prepared by D/B,or any of its agents,Design Consultants or Subcontractors,shall,at the option of the City,become the sole and exclusive property of the City. 27.7 City Right to Complete Proiect. In the event that the Agreement is terminated pursuant to this Article XXVI, City may take possession of the Project and may complete the Project by whatever method or means City may select. 27.7.1 Excess Costs. In the event that the costs to complete the Project exceed the balance of funds,which had the Project been completed in accordance with this Agreement would have been due,the D/B shall be liable for and pay such excess costs to the City. 27.8 Payment to D/B Due to Termination. Upon termination,D/B shall be entitled to receive just and equitable compensation for satisfactory Work completed. In no event shall such amount exceed the total dollar amount authorized by City,reduced by the amount of payments previously made and any deductions permitted herein. The fair and reasonable amount shall be determined in good faith by City considering the following: 27.8.1 The price for completed services accepted,including any retention,by City not previously paid. 27.8.2 The costs incurred in the performance of the Project terminated,including initial costs and preparatory expense allocable thereto. These costs are only for Work completed and accepted by the City based on an audit of all Contractors'bills of materials and the timecards for Work actually performed. 27.8.3 A portion of the D/B Fixed Fee(overhead and profit)based on the percentage of Work completed on the Project;however,if D/B would have sustained a loss on the entire Agreement had it been completed,City shall allow no profit under this section and shall reduce the amount payable to reflect the indicated rate of loss. 27.8.4 D/B and Design Subcontractor services through the date of termination based on actual time spent as documented on timecards. Expenses shall be paid based on invoice and receipts provided by D/B. 27.8.5 Any amounts for Work or Services agreed to by the City Manager and D/B,but without duplication of any amounts agreed to above. 27.8.6 Reasonable demobilization costs,to the effective date of such termination. 27.8.7 If termination occurs during Phase I,II,or III,D/B shall only be entitled to the Fees for Phases I,II,or III,associated therewith,or the respective portion thereof. 27.9 Lost Profits. Under no circumstances will D/B be entitled to any consideration for lost profit or lost opportunity costs. 27.IODeductions. The amount due D/B shall be reduced by amounts including the following: 26.10.1 Any claim that City has against D/B under this Agreement. 26.10.2 The agreed price for,or the proceeds of sale of,materials,supplies,or other things acquired by D/B or sold under the provisions of this clause and not recovered by or credited to City. 27.10.3 Damages caused by DB's breach,including Excess Costs pursuant to Section 26.7.1. 27.10.4 Property Destroyed,Lost,Stolen or Damaged. Except to the extent that City expressly assumed the risk of loss,the City Manager shall exclude from the amounts payable to D/B,the fair value,as 32 2015-02-17 Agenda Packet Page 591 determined by the City Manager,of property that is destroyed,lost,stolen,or damaged so as to become undeliverable to City. 27.11 Disputes. If DB does not agree that the amount determined by the City Manager is fair and reasonable. DB shall within thirty(30)Calendar Days of receipt of payment, shall gives notice of such disagreement to City. The dispute shall be resolved in the manner provide for in Section 21.6. 27.12 Waiver of Claims. In the event of termination under this Article XXVI,failure of DB to dispute amounts paid in the manner and within the timeframe provided in Section 26.11 shall act as a waiver of any and all claims for damages or compensation arising under this Agreement for any and all Work and Services performed under this Agreement up to the effective date of Notice of Termination. DB hereby expressly acknowledges and agrees that such claims shall be waived as herein provided. 27.13Rii!hts of City Preserved. In the event that the Agreement has been terminated,the termination shall not affect any rights or remedies of City against DB then existing or which may thereafter accrue. Any retention or payment of moneys due DB by City will not release DB from liability. It is agreed that termination hereafter will not in any way release,waiver,or abridge any rights the City has against DB's performance bond surety. ARTICLE XVIII. RECORDS AND AUDITS 28.1 Record System—Reimburseable Costs. DB shall develop and maintain an accurate system for tracking all Reimbursable Costs. Utilizing this system,DB shall include with each month payment application an itemization of all such Reimbursable Costs actually incurred by DB,during the previous month. If requested by the City,DB shall provide all backup documentation supporting such Reimbursable Costs. 28.2 Record System—Hard Construction Costs. DB shall develop and maintain an accurate system for tracking all Hard Construction Costs it incurs on the Project. Utilizing this system,DB shall include with each monthly application for payment an itemization of all Hard Construction Costs actually incurred by DB during the previous month. 28.3 Retention of Records. DB,contractors,and subcontractors shall maintain data and records related to this Agreement for a period of not less than three(3)years following receipt of final payment under this Agreement or three(3)years following final settlement associated with the termination of this Agreement pursuant to Article XXVI,above. 28.2 Audit of Records. At any time during normal business hours,during the term of the contract plus and record retention period and as often as the City deems necessary,DB and any or all Contractors or subcontractors shall make available to the City for examination at reasonable locations within the City/County of San Diego all of the data and records with respect to all matters covered by this Agreement.DB and all contractors or subcontractors will permit the City to make audits of all invoices,materials,payrolls,records of personnel,and other data and media relating to all matters covered by this Agreement.If records are not made available within the City/County of San Diego,then DB shall pay all the City's travel related costs to audit the records associated with this Agreement at the location where the records are maintained. Such costs will not be Reimbursable Costs. 28.2.1 Costs. DB and DB's agents shall allow City to audit and examine books,records,documents,and any and all evidence and accounting procedures and practices that City determines are necessary to discover and verify all costs of whatever nature,which are claimed to have been incurred,anticipated to be incurred,or for which a claim for additional compensation or for Extra Work have been submitted under this Agreement. ARTICLE XXIX.NOTICES 29.1 Writing. Any demand upon or notice required or permitted to be given by one Party to the other Party shall be in writing. 29.2 Effective Date.Except in relation to Change Orders as provided for in section 28.4 or as otherwise provided by law,any demand upon or notice required or permitted to be given by one Party to the other Party shall be effective:(i)on personal delivery,(ii)on the second business day after mailing by certified or registered U.S. Mail,return receipt requested,(iii)on the succeeding business day after mailing by Express Mail or after 33 2015-02-17 Agenda Packet Page 592 deposit with a private delivery service of general use(e.g.,Federal Express)postage or fee prepaid as appropriate,or(iv)upon successful transmission of facsimile. 29.3 Recipients. Except in relation to Change Orders,all demands or notices required or permitted to be given shall be sent to all of the following: 29.3.1 City's Project Manager 29.4 Recipients of Chance Orders. 29.4.1 West Coast General's Project Manager 29.5 Change of Address(es). Notice of change of address shall be given in the manner set forth in this Article. ARTICLE XXX.MISCELLANEOUS PROVISIONS 30.1 Headings.All article headings are for convenience only and shall not affect the interpretation of this Agreement. 30.2 Gender&Number. Whenever the context requires,the use herein of(i)the neuter gender includes the masculine and the feminine genders and(ii)the singular number includes the plural number. 30.3 Reference to Paragraphs. Each reference in this Agreement to a section refers,unless otherwise stated,to a section in this Agreement. 30.4 Incorporation of Recitals. All recitals herein are incorporated into this Agreement and are made a part hereof. 30.5 Covenants and Conditions. All provisions of this Agreement expressed as either covenants or conditions on the part of the City or the Consultant,shall be deemed to be both covenants and conditions. 30.6 Integration.This Agreement and the Exhibits and references incorporated into this Agreement fully express all understandings of the Parties concerning the matters covered in this Agreement.No change,alteration,or modification of the terms or conditions of this Agreement,and no verbal understanding of the Parties,their officers,agents,or employees shall be valid unless made in the form of a written change agreed to in writing by both Parties or an amendment to this Agreement agreed to by both Parties.All prior negotiations and agreements are merged into this Agreement. 30.7 Severability. The unenforceability,invalidity,or illegality of any provision of this Agreement shall not render any any other provision of this Agreement unenforceable,invalid,or illegal. 30.8 Drafting Ambiguities. The Parties agree that they are aware that they have the right to be advised by counsel with respect to the negotiations,terms and conditions of this Agreement,and the decision of whether or not to seek advice of counsel with respect to this Agreement is a decision which is the sole responsibility of each Party.This Agreement shall not be construed in favor of or against either Party by reason of the extent to which each Party participated in the drafting of the Agreement. 30.9 Conflicts Between Terms. If an apparent conflict or inconsistency exists between the main body of this Agreement and the Exhibits,the main body of this Agreement shall control.If a conflict exists between an applicable federal,state,or local law,rule,regulation,order,or code and this Agreement,the law,rule, regulation,order,or code shall control.Varying degrees of stringency among the main body of this Agreement,the Exhibits,and laws,rules,regulations,orders,or codes are not deemed conflicts,and the most 34 2015-02-17 Agenda Packet Page 593 stringent requirement shall control. Each Party shall notify the other immediately upon the identification of any apparent conflict or inconsistency concerning this Agreement. 30.10 Prompt Performance.Time is of the essence of each covenant and condition set forth in this Agreement. 30.11 Good Faith Performance. The parties shall cooperate with each other in good faith,and assist each other in the performance of the provisions of this Agreement. 30.12 Further Assurances. City and DB each agree to execute and deliver such additional documents as may be required to effectuate the purposes of this Agreement. 30.13 Exhibits.Each of the following Exhibits is attached hereto and incorporated herein by this reference: Exhibit A - Statement of Qualifications Proposal,Schedule of Values,Project Schedule 30.14 Compliance with Controlling Law. The Consultant shall comply with all laws,ordinances,regulations,and policiesof the federal,state,and local governments applicable to this Agreement,including California Labor Code section 1720 as amended in 2000 relating to the payment of prevailing wages during the design and preconstruction phases of a project,including inspection and land surveying work.In addition,the Consultant shall comply immediately with all directives issued by the City or its authorized representatives under authority of any laws,statutes,ordinances,rules,or regulations.The laws of the State of California shall govern and control the terms and conditions of this Agreement. 30.15 Jurisdiction,Venue,and Attorney Fees. The venue for any suit or proceeding concerning this Agreement, the interpretation or application of any of its terms,or any related disputes shall be in the County of San Diego,State of California.The prevailing Party in any such suit or proceeding shall be entitled to a reasonable award of attorney fees in addition to any other award made in such suit or proceeding. 30.16 Municipal Powers. Nothing contained in this Agreement shall be construed as a limitation upon the powers of the City as a chartered city of the State of California. 30.17 Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this agreement,against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code,as same may from time to time be amended,the provisions of which are incorporated by this reference as if fully set forth herein,and such policies and procedures used by the City in the implementation of same. Upon request by City,Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 30.18 Third Party Relationships. Nothing in this Agreement shall create a contractual relationship between City and any third party;however,the Parties understand and agree that City,to the extent permitted by law,is an intended third party beneficiary of all DB's contracts,purchase orders and other contracts between DB and third party services.DB shall incorporate this provision into its contracts,supply agreements and purchase orders. 30.19 Non-Assignment.The DB shall not assign the obligations under this Agreement,whether by express assignment or by sale of the company,nor any monies due or to become due,without the City's prior written approval.Any assignment in violation of this paragraph shall constitute a Default and is grounds for immediate termination of this Agreement,at the sole discretion of the City.In no event shall any putative assignment create a contractual relationship between the City and any putative assignee. 30.20 Successors in Interest. This Agreement and all rights and obligations created by this Agreement shall be in force and effect whether or not any Parties to the Agreement have been succeeded by another entity,and all rights and obligations created by this Agreement shall be vested and binding on any Party's successor in interest. 30.21 Independent Contractors. The DB,any consultants,contractors,subcontractors,and any other individuals employed by the DB shall be independent contractors and not agents of the City.Any provisions of this Agreement that may appear to give the City any right to direct the DB concerning the details of performing the Services under this Agreement,or to exercise any control over such performance,shall mean only that the DB shall follow the direction of the City concerning the end results of the performance. 35 2015-02-17 Agenda Packet Page 594 30.22 Approval. Where the consent or approval of a party is required or necessary under this Agreement,the consent or approval shall not be unreasonably withheld. 30.23 No Waiver. No failure of either the City or the Consultant to insist upon the strict performance by the other of any covenant,term or condition of this Agreement,nor any failure to exercise any right or remedy consequent upon a breach of any covenant,term,or condition of this Agreement,shall constitute a waiver of any such breach of such covenant,term or condition.No waiver of any breach shall affect or alter this Agreement,and each and every covenant,condition,and term hereof shall continue in full force and effect to any existing or subsequent breach. 30.24 Signing Authority. The representative for each Party signing on behalf of a corporation,partnership,joint venture or governmental entity hereby declares that authority has been obtained to sign on behalf of the corporation,partnership,joint venture,or entity and agrees to hold the other Party or Parties hereto harmless if it is later determined that such authority does not exist. IN WITNESS WHEREOF,this Agreement the City of Chula Vista and West Coast General/Condon Johnson& Associates Inc.,a Joint Venture have executed this Agreement thereby indicating that they have read and understood same,and indicate their full and complete consent to its terms. This Agreement is dated 2015and this date shall constitute the effective date of this Agreement. West Coast General/Condon Johnson Inc. a Joint Venture Corporation By: By: THE CITY OF CHULA VISTA, A Municipal Corporation Approved as to form and legality: Dated 2015. By: Glen Googins City Attorney 36 2015-02-17 Agenda Packet Page 595 i i i I Wiest Coast General S A S S n C 1 ATE S , IN C I I CONTRACTORS AND ENGINEERS i West Coast General Corporation/Condon-Johnson&Associates, Inc., a Joint Venture 13700 Stowe Drive Poway, California, 92064 619.561.4200 ddaveyr2( wcgcor coo January 13,2015 Mr. Gordon Day Building Project Manager City of Chula Vista 276 Fourth Avenue Building B Chula Vista, CA 91910 Dear Mr. Day, The WCGC/CJA JV is pleased to provide a complete proposal for the Design Build Services for the Design and Installation of a Secant Wall for Telegraph Canyon Road. The WCGCICJA JV partners are successful public works contractors (including design build projects) experienced in the construction of secant pile walls, habitat mitigation, protection, and restoration,traffic and pedestrian safety and control, and the timely prosecution and management of public works projects. The WCGC/CJA JV has successfully completed two public works projects for the City of Del Mar with very similar scopes of work to the Telegraph Canyon project. WCGC has over 25 years of public works construction experience—some of which has been performed for the City of Chula Vista- and specializes in overall project management and supervision. CJA is a general engineering contractor that has regularly performed public works construction for over 40 years and specializes in deep and difficult foundation and shoring projects. The WCGCICJA JV brings extensive design build experience to the table, and has assembled a design build team well suited for successful and timely completion of the Telegraph Canyon project. The WCGCICJA JV team has compiled a complete proposal in the following documents, and looks forward to meeting with you and City staff to discuss its elements in more detail. 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Q V Q O 00 O O o0 0 O 0 0 iOP O OM N M N O N N O O d U �N H O V V M O a V V of W N N M I c0 O� itJ N V V V G m M M N C) M 0 M M U U U U U U U U U U U U U U U U U U U U�',U'', O O O y N 47 N N N N N N N N N N N N N t0 N N N N N N N tO N N > Z Z Z Z L CC > > Z Z Z Z Z J J Z > > > 2i U U 7 Q Q O O O O O N O N O > Z Z Z Z > > Z Z Z <Z Z J J } } } } (D m M V N W V N W N N O O N N N 1 1 O O r a O N N M a 3 a 2 a C)m o EU - m c o N 2 U) U K y S U rp N�N Q'- d M V i0 O O V N M O N M O OJ O N M N L > G N N N N N o 0 0 0 0 0 0 O O O o 0 0 N E E Q M M M M M M M . CO W . ,�a N c ON N M M M M M M e M N N N N N t b o a U U U U ee U U U p U U U U U U U U U , 0,0 U U U U U U U U U N C� c O in'uo Ka RESOLUTION 2015- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE DESIGN/BUILD AGREEMENT WITH WEST COAST GENERAL/CONDON JOHNSON INC. CONSTRUCTION FOR THE DESIGN AND CONSTRUCTION OF A SECANT PILE WALL IN TELEGRAPH CANYON; AMENDING THE FISCAL YEAR 2014-15 CIP BUDGET AND ESTABLISHING A NEW CAPITAL IMPROVEMENT PROJECT "TELEGRAPH CANYON ROAD EROSION REPAIR (DR199)"; AND APPROPRIATING $1,800,000 FROM THE GENERAL FUND RESERVES TO CIP DR199 WHEREAS, the segment of Telegraph Canyon Channel between Paseo Ladera and Medical Center Drive is a natural channel that was constructed between 1976 and 1984 as part of the diversion of Telegraph Canyon Channel to allow for the widening of Telegraph Canyon Road associated with the construction of housing developments within the area; and WHEREAS, staff recently noticed that the embankment along the northside of Telegraph Canyon Road between Paseo Ladera and Medical Center Drive has sustained severe erosion and is now jeopardizing the integrity of the street improvements and associate facilities; and WHEREAS, upon recognizing the progression and the severity of the erosion, staff solicited the expertise of Ninyo and Moor and Rick Engineering Company (Consultants), on call consultants for the City, to perform geotechnical and engineering investigations; and WHEREAS, the Consultants' investigation forecasted that future rain events are anticipated to exacerbate the existing conditions, further increasing the potential for additional embankment failure and potentially eroding some segments of Telegraph Canyon Road; and WHEREAS, the Consultants recommended a 760' long, 2' wide by 26' deep buried secant pile wall (Secant Wall) to be constructed within the right of way to protect Telegraph Canyon Road; and WHEREAS, based on the recommendation of the Consultants to prevent future erosion of Telegraph Canyon Road, staff decided to retain RBF Engineering to do the preliminary design of the secant pile wall and become a part of the design build team process; and WHEREAS, on December 19, 2014, in order to assure the protection of public properties staff issued a Design Build RFP to seven different engineering firms qualified to construct the secant wall; and WHEREAS, on January 13, 2015, three qualified firms submitted a Statement of Qualifications (SOQ). The SOQs were reviewed and scored by a committee, and the top three firms were interviewed on January 22, 2015; and 2015-02-17 Agenda Packet Page 601 WHEREAS, the review panel selected West Coast General/ Condon Johnson Inc. design build team as the best firm to complete the design and construct the Secant Pile Wall in Telegraph Canyon. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Chula Vista that it: 1. Approves a Design Build Agreement with West Coast General/Condon Johnson Inc. )], in the form presented, with such minor modifications as may be required or approved by the City Attorney: a copy of the agreement shall be kept on file in the Office of the City; and authorizes and directs the City Manager or his designee to execute the agreement; and 2. Amends the Fiscal Year 2014-15 budget by establishing a new Capital Improvement Project"Telegraph Canyon Road Erosion Repair" (DR199); and 3. Appropriates $1,800,000 to DR199 in the CIP Expenditure Category of the Non Departmental budget from General Fund reserves. Presented by Approved as to form by Richard A. Hopkins Glen R. Googins Director of Public Works City Attorney 2015-02-17 Agenda Packet Page 602 City of Chula Vista OF CHU�LAVISTA Staff Report File#: 15-0023, Item#: 13. COUNCIL DISCUSSION AND POSSIBLE ACTION REGARDING CHANGING THE TIME OF REGULAR CITY COUNCIL MEETINGS City of Chula Vista Page 1 of 1 Printed on 2/12/2015 2015-02-17 Agenda Packet Page 603 City of Chula Vista CTY CHUILAVISTA Staff Report File#: 15-0024, Item#: 14. COUNCILMEMBER AGUILAR: CONSIDERATION OF THE FORMATION OF AN AD-HOC SUBCOMMITTEE WITH COUNCILMEMBERS AGUILAR AND McCANN FOR THE 2015 STARLIGHT PARADE City of Chula Vista Page 1 of 1 Printed on 2/12/2015 istar 2015-02-17 Agenda Packet powered by Leg age 604 City of Chula Vista OF CHU�LAVISTA Staff Report File#: 15-0028, Item#: 15. CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9 (b) One Case. [The case to be discussed involves a letter dated January 21, 2015, from Coast Law Group LLP and Briggs Law Corporation Re: Notice of Intent to File Law Suit and Demand for Cure Public Records Act and Brown Act Violations] City of Chula Vista Page 1 of 1 Printed on 2/12/2015 2015-02-17 Agenda Packet Page 605 City of Chula Vista CTY CHUILAVISTA Staff Report File#: 15-0042, Item#: 16. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: 224 Third Avenue, Chula Vista, CA [APN: 568-044-19] Agency Negotiators: Eric Crockett and Rick Ryals Negotiating Parties: City of Chula Vista and Hector Gonzales Under Negotiation: Price and Terms City of Chula Vista Page 1 of 1 Printed on 2/12/2015 istar 2015-02-17 Agenda Packet powered by Leg age 606